3 Reasons to Sell Boeing

The following video is part of our "Motley Fool Conversations" series, in which industrials editor/analyst Brendan Byrnes discusses topics around the investing world.

As part of our series "3 Reasons to Buy/Sell," Brendan discusses the bear case for Boeing. While we don't offer an explicit buy or sell recommendation, we do believe that investors should look at both sides of the coin before taking action on a stock. With that said, Boeing could struggle in the future given the state of the economy, since its commercial airline customers are highly sensitive to the macroeconomic events. If Europe drags the global economy down, it would certainly hurt Boeing's order book. Boeing also has considerable, though declining, exposure to the defense industry. Last year, 38% of its revenues came from the U.S. government alone, but potential investors need to consider the threat of a $500 billion slash to the defense budget over the next 10 years.

Boeing gets about half of its revenues from international markets, and considering the mess Europe is in, many investors may be nervous about investing in companies that are internationally focused. But they shouldn't be. Emerging markets are giving new life to established American companies with deep pockets. As these industry titans look abroad for more sales, they aren't starting with a blank slate -- they're bringing their operational excellence to new markets and thriving. To uncover three of our favorite picks to take advantage of high-growth emerging markets, we invite you to read a copy of our free report: "3 American Companies Set to Dominate the World." The report won't be available forever, so click here to get your copy today!

Brendan Byrnes owns shares of United Technologies. The Motley Fool owns shares of Lockheed Martin. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Read/Post Comments (2) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On May 18, 2012, at 10:18 PM, ihatejunk wrote:

    Another Boeing slam article from, who woulda guessed it? Sell Boeing blah blah blah.

  • Report this Comment On May 20, 2012, at 9:50 AM, buffalonate wrote:

    As the House of Representatives proved this week, significantly cutting military spending will never happen.

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1890198, ~/Articles/ArticleHandler.aspx, 10/21/2016 10:54:37 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,067.54 -94.81 -0.52%
S&P 500 2,136.68 -4.66 -0.22%
NASD 5,242.82 0.99 0.02%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/21/2016 10:39 AM
^DJI $18065.35 Down -97.00 -0.53%
BA $135.19 Down -0.65 -0.48%
Boeing CAPS Rating: ****
LMT $230.16 Down -1.67 -0.72%
Lockheed Martin CAPS Rating: ****
UTX $97.88 Down -1.41 -1.42%
United Technologie… CAPS Rating: ****