Please ensure Javascript is enabled for purposes of website accessibility

Why Boeing Stock Just Popped 5%

By Rich Smith - Mar 12, 2021 at 12:55PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

All of a sudden, 737 MAXes are selling like hotcakes.

What happened

Boeing (BA -0.35%) stock took off in Friday trading and is up a solid 5% as of noon EST.

The move comes in response to a Boeing announcement this morning. Investment firm 777 Partners has placed an order to acquire 24 Boeing 737 MAX airplanes and has taken out "purchase rights" to acquire a further 60 airplanes at a future date.

Arrow angles pointing up on a green stock chart

Image source: Getty Images.

So what

Boeing advises that 777 Partners "will place [i.e. lease] the single-aisle airplanes with its growing portfolio of low-cost carrier investments around the world."  

Expanding on the news, Reuters notes today that Boeing "is close to a multibillion-dollar deal to sell dozens of its 737 MAX 7 jets to Southwest Airlines Co.," and reminded that "Alaska Airlines agreed in December to buy 23 737 MAX 9 jets and European budget airline Ryanair bought 75 jets."  

And earlier this week, my fellow Fool and airlines-watcher Lou Whiteman noted that in February, "for the first time since November 2019," Boeing booked more new airplane orders than it lost through cancellations.

Now what

In short, things are looking up for the beleaguered airplane builder. And today's announcement provides another new clue for investors in the airline industry looking to capitalize on this trend.

According to 777 Partners founder Joshua Wander: "The retrenchment of traditional carriers globally has created an unprecedented market opportunity for more agile and cost-efficient operators. These aircraft will enable our operators to accelerate the recovery in the destinations they serve."

In short, if you're looking for the new growth engine in airlines, you might want to keep an especially close eye on the discount carriers. One industry insider, at least, sees this as the place to be.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

The Boeing Company Stock Quote
The Boeing Company
BA
$126.75 (-0.35%) $0.45

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
345%
 
S&P 500 Returns
119%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/16/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.