Why Cramer Is Advising You To Buy The Dip In Boeing
Boeing Co’s (NYSE:BA) latest electrical glitch warning for its 737 MAX planes could just be a hiccup and a good opportunity for investors to buy more shares of the company on the dip, CNBC "Mad Money" host Jim Cramer said on Monday.
What Happened: Airlines temporarily grounded dozens of 737 MAX jets on Friday to address an electrical power system issue in the aircraft. Shares of the planemaker have since declined 2%.
Cramer believes the stock is at an inflection point and the recent dip is due to a “short-term turbulence” and circumstances do not warrant dumping the stock.
Credit rating agency Moody’s on Monday said Boeing’s latest electrical issue will be a minor disturbance and not materially interrupt the MAX program's recovery through 2021.
Why It Matters: Boeing is scheduled to report its monthly delivery and order numbers on Tuesday. The planemaker has last month already revealed at least 172 new orders from multiple carriers including Southwest Airlines Co (NYSE:LUV), Alaska Air Group (NYSE:ALK), and Canadian low-cost carrier Flair Airlines, as reported by Reuters.
Boeing reported $58.2 billion of revenue in 2020, down from $76.6 billion in 2019 and $100.8 billion in 2018.
Chicago-headquartered Boeing is making full efforts to win back and retain customers after its bestselling plane 737 MAX resumed commercial flying after a 20-month safety ban triggered by fatal crashes.
Price Action: Boeing shares closed 1.13% lower at $249.52 on Monday.
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