The "cloudiness of forecasts" for Boeing (BA) is likely to keep weighing on BA stock going forward, said Dave Mazza, the CEO of Roundhill Investments, on the Schwab Network recently.
Specifically, the uncertainty of the outcome of trade battle between the U.S. and China, along with worries about the economy and doubts about the firm's ability to get its 737 Max out the door, are likely to weigh on the name, Mazza believes.
Why Boeing's Outlook Is Uncertain
As "the largest exporter in the U.S.," Boeing "will be in the crosshairs" of the trade battle and the talks between the U.S. and China, Mazza predicted.
And if a global slowdown or recession materializes, Boeing's ability to recover will look more questionable, the investor asserted.
Finally, if the firm is unable to produce and deliver its 737 Max planes, it will be difficult for BA stock "to have sustained momentum," according to Mazza. That's because the 737 Max is widely seen as the firm's "cash cow," he explained.
Investors Remain Skeptical
BA stock has outperformed the S&P 500 so far this year, but it has underperformed its peers in the industrial and aerospace/defense spaces, Mazza reported. Consequently, he thinks that the Street "remains somewhat skeptical" about BA stock.
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Disclosure: None. This article is originally published at Insider Monkey.