Boeing Co. (NYSE: BA) continues to hold onto its top ranking as the best performing stock for the year to date among the 30 equities that comprise the Dow Jones industrial average. Boeing stock ended the week with a share price loss of 4.6% and a year to date gain of about 12.9%.
The second-best performer among the Dow 30 so far this year is Nike Inc. (NYSE: NKE), up about 4.7%, followed by Cisco Systems Inc. (NASDAQ: CSCO), up about 3.2%, Microsoft Corp. (NASDAQ: MSFT), up about 3.1%, and JPMorgan Chase & Co. (NYSE: JPM), up about 2.9%. Just nine Dow stocks have posted year-to-date gains as of Friday.
The index dropped 1,330 points over the course of the past week, a loss of 5.2%. Market volatility, as measured by the VIX, opened the week at a relatively tame 18.87 and closed the week at 29.75 after jumping to near 50 on Tuesday and to 40 on Friday.
The aerospace giant spent the week at the Singapore Air Show where its sole announcement listed a number of airlines that had signed service contracts totaling about $1 billion. Boeing’s goal is to grow its services business from sales of around $17 billion last year to $50 billion by 2022.
Globally, the commercial aircraft maintenance, repair and overhaul market posted sales of around $77 billion last year and could nearly double over the next decade. Major independents based all over the world, including U.S.-based AAR, dominate. Boeing’s chief rival, Airbus, posted just $3 billion in services revenues in 2016 (last year’s numbers aren’t out yet), so the European giant is also looking to beef up its services business.
On Thursday, The Wall Street Journal reported that Boeing has been in talks to acquire aircraft parts maker Woodward. Boeing CEO Dennis Muilenburg wants the company to become more vertically integrated and reduce the number of outside suppliers it works with. The 787 Dreamliner project may have been the company’s last rodeo to depend on hundreds of outside suppliers.
Boeing’s shares closed up about 1% Friday, at $332.83 in a 52-week range of $166.35 to $361.45. The consensus 12-month price target on the stock is $385.35, up $14.09 in the past week. The low end of the price target range is $289 and the high end is $470.
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