Investing

Why the Best GDP Growth in 40 Years Could Drive These 5 Stocks Much Higher

Boeing

This company has had a public relations nightmare due to the 737 Max issues. Boeing Co. (NYSE: BA) is the world’s leading aerospace company and the largest manufacturer of commercial jetliners and military aircraft combined. It is also one of the most valuable brands in the world.

The different segments in the company are Commercial Airplanes, Boeing Defense, Space & Security and Boeing Capital. The latter provides financial solutions facilitating sale and delivery of Boeing commercial and military aircraft, satellites and launch vehicles.

In 2018, Boeing and Embraer signed a nonbinding memorandum of understanding to create a new strategic partnership for commercial aviation. The new joint venture is valued at $4.75 billion, which values Boeing’s 80% share at $3.8 billion.

Jefferies has a $275 price target, while the consensus target is $229.59. Tuesday’s closing print for Boeing stock was $217.18 per share.

Deere

Equipment companies’ products certainly will be in demand, and this is a leader. Deere & Co. (NYSE: DE) is the largest manufacturer/distributor of agricultural equipment worldwide, with leading market shares in large farm-equipment segments.

Its Construction and Forestry segment, which should benefit the most from an infrastructure push, offers a range of machines and service parts used in construction, earthmoving, road building, material handling and timber harvesting, including backhoe loaders; crawler dozers and loaders; four-wheel-drive loaders; excavators; motor graders; articulated dump trucks; landscape loaders; skid-steer loaders; milling machines; recyclers; slipform pavers; surface miners; asphalt pavers; compactors; tandem and static rollers; mobile crushers and screens; mobile and stationary asphalt plants; log skidders; feller bunchers; log loaders; log forwarders; and log harvesters and related logging attachments.

Shareholders receive a 1.28% dividend. The $350 Jefferies price objective compares with a $321.76 consensus target price. Tuesday’s closing share price for Deere stock was $317.09.

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