Will Boeing Help You Retire Rich?http://www.fool.com/retirement/general/2012/09/18/will-boeing-help-you-retire-rich.aspx Dan Caplinger
September 18, 2012
Now more than ever, a comfortable retirement depends on secure, stable investments. Unfortunately, the right stocks for retirement won't just fall into your lap. In this series, I look at 10 measures to show what makes a great retirement-oriented stock.
If you want your portfolio to fly high, then looking at Boeing (NYSE: BA ) makes intuitive sense. The company is a giant in the aircraft manufacturing world, with its model numbers known around the world by travelers and businesses alike. The troubled economy has been far kinder to Boeing than many would have thought, but can the plane-maker capitalize on its opportunities? Let's revisit how Boeing does on our 10-point scale.
The right stocks for retirees
Sure, you still want good returns, but you also need to manage your risk and protect yourself against bear markets, which can maul your finances at the worst possible time. The right stocks combine both of these elements in a single investment.
When scrutinizing a stock, retirees should look for:
With those factors in mind, let's take a closer look at Boeing.
Source: S&P Capital IQ. Total score = number of passes.
Since we looked at Boeing last year, the company hasn't improved on its 4-point score. The stock has gained about 10% in the past year, but the aircraft maker is at an inflection point in terms of where it may go from here.
Boeing is dealing with two completely different industry dynamics right now. On one hand, its defense business is under fire, with sequestration poised to rip a big hole in the government's defense budget. Although Lockheed Martin's (NYSE: LMT ) fighter program may survive the cuts, General Dynamics (NYSE: GD ) may not be so lucky, as its focus on naval vessels seems not to get as high a priority as aircraft.