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Boeing Updates Long-Term Jet Market Outlook: Stocks to Gain
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The Boeing Company (BA - Free Report) recently revealed its long-term outlook for the global aircraft market, forecasting opportunities worth $8 trillion over the next two decades. This reflects a solid 11.1% improvement from the prior long-term outlook made by America’s largest jet maker in 2021.
Highlights of the Outlook
Boeing projects global demand for new commercial planes to reach 42,595 by 2042, indicating an improvement of 3.9% from 2022’s figure. Overall, the global fleet is projected to double to more than 48,500 in the next 20 years. In particular, new single-aisle airplanes will account for more than 75% of all new deliveries, totaling more than 32,000 airplanes, reflecting an increase of 3.2% from the 2022 outlook.
Market opportunities for commercial services are now projected to be worth $3.8 trillion over the next 20 years, which implies a solid 5.6% hike over the prior 20-year forecast.
What Led to the Increased View?
Overcoming the woes of pandemic, commercial air travel has been improving in the recent past, buoyed by increased economic activities. Moreover, the growth of low-cost carriers (LCC) has been driving down fares, thereby making travel more accessible.
This in turn has been bolstering the commercial aerospace along with the aftermarket aviation services market, which played the role of the key growth catalyst, boosting Boeing’s jet market outlook.
Notably, global air traffic in February 2023 (measured in revenue passenger kilometers or RPKs) rose 55.5% compared with February 2022. Globally, traffic is now at 84.9% of the February 2019 levels. Looking ahead, passenger traffic is projected to return to 2019 levels over the course of the next 12-18 months. Such favorable projections must have encouraged Boeing to upgrade its 20-year commercial market outlook.
Stocks to Gain
Considering the aforementioned discussion, we may safely conclude that with the release of Boeing’s latest outlook, the spotlight is primarily on major commercial jet maker stocks. These include Boeing and Airbus, which constitute more than 50% of the global commercial jet market, along with a few more, which hold solid growth prospects and hence should find a place on investors’ watchlist.
Boeing develops, produces, and markets commercial jets, along with providing related support services. The company is a leading producer of commercial aircraft and has a series of commercial jetliners like the 737 Next-Generation narrow-body model as well as the 747, 767, 777 and 787 wide-body models.
This Zacks Rank #3 (Hold) stock boasts a long-term earnings growth estimate of 4%. The Zacks Consensus Estimate for BA’s 2024 sales implies an improvement of 15.8% from the 2023 expected sales figure.
Airbus’ (EADSY - Free Report) diverse product line includes renowned passenger jetliners, which vary in size from 100-seat jetliners to the double-deck A380 that is capable of transporting more than 850 passengers. Its significant jetliners are A220, A320, A330, A350 and A380.
This Zacks Rank #3 stock has a long-term earnings growth estimate of 12.4%. The consensus estimate for EADSY’s 2024 sales suggests an improvement of 14.4% from the 2023 expected sales figure. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Textron (TXT - Free Report) is a renowned aircraft manufacturer of a variety of jets including business jets. Its Textron Aviation segment is home to the Beechcraft, Cessna and Hawker aircraft brands.
This Zacks Rank #3 stock company’s earnings are projected to grow 7.4% in the long term. The Zacks Consensus Estimate for EADSY’s 2024 sales implies an improvement of 5.9% from the 2023 expected sales figure.
Embraer (ERJ - Free Report) designs and manufactures commercial as well as executive jets along with providing support services for aircraft, like modification, flight operation, and maintenance services. Its E-jets and E-jets E2 families of commercial aircraft are worth mentioning in this regard.
This Zacks Rank #3 company’s earnings are projected to grow 17% in the long term. The Zacks Consensus Estimate for ERJ’s 2024 sales indicates an improvement of 10.5% from the 2023 expected sales figure.
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Boeing Updates Long-Term Jet Market Outlook: Stocks to Gain
The Boeing Company (BA - Free Report) recently revealed its long-term outlook for the global aircraft market, forecasting opportunities worth $8 trillion over the next two decades. This reflects a solid 11.1% improvement from the prior long-term outlook made by America’s largest jet maker in 2021.
Highlights of the Outlook
Boeing projects global demand for new commercial planes to reach 42,595 by 2042, indicating an improvement of 3.9% from 2022’s figure. Overall, the global fleet is projected to double to more than 48,500 in the next 20 years. In particular, new single-aisle airplanes will account for more than 75% of all new deliveries, totaling more than 32,000 airplanes, reflecting an increase of 3.2% from the 2022 outlook.
Market opportunities for commercial services are now projected to be worth $3.8 trillion over the next 20 years, which implies a solid 5.6% hike over the prior 20-year forecast.
What Led to the Increased View?
Overcoming the woes of pandemic, commercial air travel has been improving in the recent past, buoyed by increased economic activities. Moreover, the growth of low-cost carriers (LCC) has been driving down fares, thereby making travel more accessible.
This in turn has been bolstering the commercial aerospace along with the aftermarket aviation services market, which played the role of the key growth catalyst, boosting Boeing’s jet market outlook.
Notably, global air traffic in February 2023 (measured in revenue passenger kilometers or RPKs) rose 55.5% compared with February 2022. Globally, traffic is now at 84.9% of the February 2019 levels. Looking ahead, passenger traffic is projected to return to 2019 levels over the course of the next 12-18 months. Such favorable projections must have encouraged Boeing to upgrade its 20-year commercial market outlook.
Stocks to Gain
Considering the aforementioned discussion, we may safely conclude that with the release of Boeing’s latest outlook, the spotlight is primarily on major commercial jet maker stocks. These include Boeing and Airbus, which constitute more than 50% of the global commercial jet market, along with a few more, which hold solid growth prospects and hence should find a place on investors’ watchlist.
Boeing develops, produces, and markets commercial jets, along with providing related support services. The company is a leading producer of commercial aircraft and has a series of commercial jetliners like the 737 Next-Generation narrow-body model as well as the 747, 767, 777 and 787 wide-body models.
This Zacks Rank #3 (Hold) stock boasts a long-term earnings growth estimate of 4%. The Zacks Consensus Estimate for BA’s 2024 sales implies an improvement of 15.8% from the 2023 expected sales figure.
Airbus’ (EADSY - Free Report) diverse product line includes renowned passenger jetliners, which vary in size from 100-seat jetliners to the double-deck A380 that is capable of transporting more than 850 passengers. Its significant jetliners are A220, A320, A330, A350 and A380.
This Zacks Rank #3 stock has a long-term earnings growth estimate of 12.4%. The consensus estimate for EADSY’s 2024 sales suggests an improvement of 14.4% from the 2023 expected sales figure. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Textron (TXT - Free Report) is a renowned aircraft manufacturer of a variety of jets including business jets. Its Textron Aviation segment is home to the Beechcraft, Cessna and Hawker aircraft brands.
This Zacks Rank #3 stock company’s earnings are projected to grow 7.4% in the long term. The Zacks Consensus Estimate for EADSY’s 2024 sales implies an improvement of 5.9% from the 2023 expected sales figure.
Embraer (ERJ - Free Report) designs and manufactures commercial as well as executive jets along with providing support services for aircraft, like modification, flight operation, and maintenance services. Its E-jets and E-jets E2 families of commercial aircraft are worth mentioning in this regard.
This Zacks Rank #3 company’s earnings are projected to grow 17% in the long term. The Zacks Consensus Estimate for ERJ’s 2024 sales indicates an improvement of 10.5% from the 2023 expected sales figure.