We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Boeing Opens Doors of First 737 Completion Factory in China
Read MoreHide Full Article
Per a Media release The Boeing Co. (BA - Free Report) recently opened its first 737 completion plant facility in Zhoushan, China. This was a strategic investment move by the company, which aims at giving a tough competition to one of its biggest arch-rivals, Airbus SE (EADSY - Free Report) , in one of the world's top travel markets.
The Zhoushan manufacturing site, which is located about 180 miles from southeast Shanghai. Boeing sets a target to reach a total of delivering 100 planes a year from Zhoushan facility.
In 2017, Boeing invested nearly $33 million to purchase a majority stake in a joint venture with state owned Commercial Aircraft Corp of China (COMAC) in order to build the completion center, which installs interiors and paints liveries.
Boeing’s 737
Boeing produces 52 airplanes of 737 series per month and has plans to expand production volumes to 57 a month in 2019. The company has a total backlog 4,654 airplanes of the 737 series. The backlog of 737 airplanes is expected to further increase owing to its unique features offered to customers.
Also, Boeing 737 MAX is enjoying brisk demand in the single-aisle market for its fuel efficiency and low carbon dioxide emissions. Powered by Commercial Fan Motor (CFM) International LEAP-1B engines, the Advanced Technology winglet of this airplane enhances its performance.
Commercial Airplane — Outlook
Per the long-term guidance provided by Boeing, demand for commercial airplanes is expected to double in the next two decades. The requirement for new planes will touch 42,730 by 2037. The single aisle segment is expected to witness maximum growth with a need for 31,360 airplanes. Total value of the commercial aeroplane market with commercial airplanes and services will attain nearly $15 trillion.
According to the company’s view, China is on course to become the largest commercial aviation market in the world. It is also estimated that the country will need nearly 7,700 new airplanes worth $1.2 trillion over the next 20 years. We believe, Boeing — a premier single-aisle commercial aeroplane — will be a major player with its 737 family.
Price Movement
In the past 12 months, Boeing has returned 7.7% versus its industry’s decline of 4.3%.
Lockheed Martin delivered average positive surprise of 13.92% in the last four reported quarters. The Zacks Consensus Estimate for 2018 has moved 2.9% north in the past 90 days to $17.51.
Raytheon delivered average beat of 6.71% in the last four reported quarters. The Zacks Consensus Estimate for 2018 bottom line has been inched 1.8% up in the past 90 days to $10.10.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Boeing Opens Doors of First 737 Completion Factory in China
Per a Media release The Boeing Co. (BA - Free Report) recently opened its first 737 completion plant facility in Zhoushan, China. This was a strategic investment move by the company, which aims at giving a tough competition to one of its biggest arch-rivals, Airbus SE (EADSY - Free Report) , in one of the world's top travel markets.
The Zhoushan manufacturing site, which is located about 180 miles from southeast Shanghai. Boeing sets a target to reach a total of delivering 100 planes a year from Zhoushan facility.
In 2017, Boeing invested nearly $33 million to purchase a majority stake in a joint venture with state owned Commercial Aircraft Corp of China (COMAC) in order to build the completion center, which installs interiors and paints liveries.
Boeing’s 737
Boeing produces 52 airplanes of 737 series per month and has plans to expand production volumes to 57 a month in 2019. The company has a total backlog 4,654 airplanes of the 737 series. The backlog of 737 airplanes is expected to further increase owing to its unique features offered to customers.
Also, Boeing 737 MAX is enjoying brisk demand in the single-aisle market for its fuel efficiency and low carbon dioxide emissions. Powered by Commercial Fan Motor (CFM) International LEAP-1B engines, the Advanced Technology winglet of this airplane enhances its performance.
Commercial Airplane — Outlook
Per the long-term guidance provided by Boeing, demand for commercial airplanes is expected to double in the next two decades. The requirement for new planes will touch 42,730 by 2037. The single aisle segment is expected to witness maximum growth with a need for 31,360 airplanes. Total value of the commercial aeroplane market with commercial airplanes and services will attain nearly $15 trillion.
According to the company’s view, China is on course to become the largest commercial aviation market in the world. It is also estimated that the country will need nearly 7,700 new airplanes worth $1.2 trillion over the next 20 years. We believe, Boeing — a premier single-aisle commercial aeroplane — will be a major player with its 737 family.
Price Movement
In the past 12 months, Boeing has returned 7.7% versus its industry’s decline of 4.3%.
Zacks Rank & Other Key Picks
Boeing currently has a Zacks Rank #2 (Buy). Other top-ranked stocks from the sector include Lockheed Martin Corporation (LMT - Free Report) and Raytheon Company , each carrying a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Lockheed Martin delivered average positive surprise of 13.92% in the last four reported quarters. The Zacks Consensus Estimate for 2018 has moved 2.9% north in the past 90 days to $17.51.
Raytheon delivered average beat of 6.71% in the last four reported quarters. The Zacks Consensus Estimate for 2018 bottom line has been inched 1.8% up in the past 90 days to $10.10.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>