Bottom Line Inc

November 21, 2018 | The Boeing Company | BA

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This week’s Stock of the Week may be the biggest company in its field, but it’s not sitting still.

Flying High

The Boeing Company (BA) is not only the world’s biggest maker of commercial airliners but also an important supplier to the US Department of Defense.

Increased military spending will bring billions of dollars more to Boeing, whose 2017 revenue of $93.4 billion will likely grow to $99.2 billion this year and $109.1 billion in 2019. In addition, Boeing recently acquired Aurora Flight Sciences, an aftermarket service and spare-parts company that brings Boeing firmly into the high-margin service business.

In business since 1916, Boeing now has an order backlog of nearly 6,000 commercial planes and is increasing its output of its highest-margin aircraft, the 737. A significant expansion of US-China trade tensions could hold back the company because of Boeing’s need for aluminum. Tariffs on Chinese aluminum might tighten supplies or raise costs. But the risk appears manageable. And Boeing’s dividend of $6.84/share/yr., recently yielding 2%, appears secure.

Fiscal year: December. Earnings per share: 2019 est./$17.93…2018 est./$15.07…2017/$13.43.

Kevin Miller is chief investment officer of the $625 million Evaluator Funds, Bloomington, Minnesota, including the $58 million E-Valuator Conservative Risk Managed Strategy Fund (EVCLX). EvaluatorFunds.com

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