Boeing stock price has come under pressure in the past few months, moving from the year-to-date high of $242.50 in July to the current $200. This crash has happened even as the company’s business and turnaround measures improved. So, is it safe for the company to buy the dip?
Boeing turnaround is accelerating
Boeing, the biggest aircraft manufacturer in the United States, is experiencing substantial success as it continues to implement its turnaround measures after moving from one crisis to another in the past few years.
The most important aspect about this turnaround is that the company has not had an issue since 2024, a move that has helped the company continue to improve and accelerate its turnaround.
This trend has helped it continue to receive substantial orders from airlines as it continues to bridge the gap with Airbus. As a result, the most recent results showed that the company’s backlog jumped to 5,900 planes worth over $636 billion.
In November, the company booked 164 gross orders, with half of them coming from its 778X jets. It has now received 1,000 orders through November this year, passing Airbus, which recorded 797 planes.
Airbus has struggled as it has suffered some major challenges, including a recent software issue. At the same time, the FAA recently asked airlines of Airbus A320 to perform more inspections of door fasteners.
Boeing’s business has also benefited as the FAA has allowed the management to make 42 Boeing 737s a month. While the management has welcomed the new blessing, it is taking its time to ensure that the quality of its planes is of good. The management expects that the FAA will give it another approval for its smallest variant of the 737.
READ MORE: Boeing stock price analysis: brace for turbulence ahead of a rebound
Boeing to generate more money in 2026
Barring any major mechanical issues, Boeing hopes to generate robust cash in 2026 as it completes its turnaround measures.
The most recent results showed that the company’s revenue rose to $23.3 billion as it delivered 160 planes during the quarter. Its revenue was up by 30% from what it made last year, while its nine-month revenue rose by 28% to $65 billion.
Its loss improved to $5.3 billion, a figure that included a $4.9 billion charge associated with the updated 777x certification timing.
The company now hopes to accelerate generating substantial amounts of cash in the coming years. Its ultimate goal is to hit an annual free cash flow of $10 billion in the next few years. This will be a big figure for a company that analysts believe will make $2.46 billion in FCF next year.
Still, the company faces some major headwinds. For example, it needs o repay debts worth over $8 billion next year. It also needs to pay another $3 billion through its Spirit AeroSystems buyout, which it closed this week.
The deal will see the company take over units from its biggest supplier. It will also expand its maintenance, repair, and overhaul services. Airbus, which is a Spirit customer, will take over some of Spirit’s operations.
Boeing stock price technical analysis
BA stock chart | Source: TradingView
The daily timeframe chart reveals that the BA stock price bottomed at $176.68 in November. It then rebounded and has now moved to the psychological point at $200.
The stock is now stuck at the 38.2% Fibonacci Retracement level. It is also below the 50-day and 100-day moving averages and the Supertrend indicator.
It has also formed a descending broadening wedge pattern. There are also signs that it has formed an island reversal pattern. Therefore, the most likely scenario is where it resumes the downtrend and retests the support at $190. It will then rebound, and possibly retest the year-to-date high of $242 in 2026.
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