Boeing's 787 Dreamliner Becoming a Nightmare for Investors

The stock markets continued their slow slide into earnings season today, with the Dow Jones Industrial Average (DJINDICES: ^DJI  ) losing 0.36% of its value and the S&P 500 (SNPINDEX: ^GSPC  ) falling 0.3%. There wasn't a lot of economic news driving stocks, but investors were looking ahead at Alcoa's (NYSE: AA  ) earnings, which are due after the bell and are often seen as a barometer for earnings season overall. In the meantime, we have some big names leading the Dow lower, which this Fool thinks provides investors with some buying opportunities.

Boeing (NYSE: BA  ) has fallen 2.8% to lead the Dow's losers after its new 787 Dreamliner aircraft suffered the second technical problem in as many days. Yesterday, there was a fire on a Japan Air 787, and today a fuel leak was discovered on a different aircraft on the same airline. Small issues often arise in new planes, but the pace of incidents has investors worried right now. Until we hear what the final diagnosis is, I would stay cautious. But if the issues are small, this may be a great time to make a contrarian play and buy Boeing. The stock has a P/E of just 13 and a 2.5% dividend yield, and 787 deliveries are picking up pace, which should help future results.

For a deeper look at Boeing's opportunities and risks going forward, take a look at our in-depth report on the stock. In this premium research report, two of The Fool's best industrial-sector minds have collaborated to provide investors with the must-know info on Boeing. They'll be updating the report as key news hits, so be sure to claim a copy today by clicking here now.

The wireless space is being sold off today, and again, this may be a great long-term opportunity to get into some quality names. AT&T (NYSE: T  ) is down 1.6% today after it reported smartphone sales of 10 million in the fourth quarter, which beats last year's record of 9.4 million and should put it at 26.7 million smartphones for the year, beating its own expectation of 26 million. Yesterday, Verizon Wireless, which is a joint venture of Verizon (NYSE: VZ  ) and Vodafone (NASDAQ: VOD  ) , said that it gained 2.1 million net subscribers and that smartphones made up 87% of device sales in the fourth quarter. In the short term, these numbers may put pressure on earnings because of phone subsidies, but this is great long-term news for both companies, so investors have a great buying opportunity before them.


Read/Post Comments (0) | 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.

Be the first one to comment on this article.

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: 2185297, ~/Articles/ArticleHandler.aspx, 8/22/2014 8:22:29 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...


Advertisement