Founded in 1916 by William Boeing in Seattle, the business soon expanded to become involved in supplying the United States Defence Industry. The company’s headquarters are still situated in Chicago and as you would imagine, a company that builds jumbo jets boasts the largest building in the world.
As a global leader in the highly competitive aircraft construction sector, Boeing is currently the USA’s leading exporter (by dollar value). Defence contracts account for nearly fifty percent of the company’s income and they are rated globally as the number 2 defence contractor. Their business remit also includes close collusion with NASA where it assists them in space exploration.
Boeing’s first-ever offering to the commercial aviation sector was their 80 model and they were responsible for building the first U.S. jetliner in 1958 which was their iconic 707. The rest, as they say, is history and now Boeing’s airliners form a major part of virtually every airline around the globe. With such accolades as producing the world’s biggest and best-selling jetliners to their credit, Boeing looks set to continue producing steady profits for many years to come.
Before trading stocks like Boeing, it’s essential that you get to know the basics surrounding this company:
- Boeing is one of the United States’ largest companies. It is a member of the Fortune 500 and it is currently trading on the New York Stock Exchange as “BA”.
- Boeing very much had things their own way right up until the 1990’s when several European based companies merged to create the aircraft manufacturer called Airbus. Since then, around half of Boeing’s civil aircraft business has been serviced by the relative newcomer. Both companies have had to develop a flexible approach to geographical and business requirements in the face of rising operating costs.
- Boeing has suffered from defence budget cuts and the often-turbulent financial state of the global civil aviation industry. With mergers and failures abounding, they often labour under the shadow of cancelled orders and non-payments for ordered aircraft.
- On the plus side, as fleets age, air travel looks set to grow by a sustainable 5% per year and there are new and evolving markets being facilitated by the evolving Middle Eastern and Asian economies.
- The further good news is that despite the difficult global trading sector, the company’s current earnings reports look positive. This has led many analysts to predict a continued and profitable future for Boeing. The company’s move from defence towards technology should further enhance their long-term prospects and that can only add to their value.
When trading in stocks such as Boeing, traders would be well advised to make use of the most up-to-date money management and education tools available. From charting and alerts to information on the latest prices, the best decisions are made by those who stay well informed.