The Boeing Company (BA): A Bull Case Theory

We came across a bullish thesis on The Boeing Company (BA) on The Value Road’s Substack. In this article, we will summarize the bulls’ thesis on BA. The Boeing Company (BA)'s share was trading at $211.47 as of 2^nd June. BA’s forward P/E was 36.90 according to Yahoo Finance.

The company in focus, a niche manufacturer established in 1941, has recently regained investor interest after a tumultuous few years. Once hindered by a cascade of headwinds—including Boeing’s 737 Max issues, the pandemic's blow to air travel, and shifting defense budget priorities—the business also faced internal setbacks tied to a problematic migration from its old MRP system to SAP, leading to financial reporting issues.

However, those issues have since been resolved, aided by the appointment of a new CFO, and the company has returned to profitability. Its investment appeal stems from a classic setup where enterprise value ($12.9 million) is significantly below its market cap ($21.9 million), suggesting underlying financial strength or overlooked asset value. With macro headwinds dissipating or even reversing into tailwinds—such as a resurgence in defense spending, increased aircraft orders from Boeing and Airbus, and demand from the growing commercial space sector, including Ascendant Spaceflight Services—the company's positioning has improved markedly.

It produces a specialized component essential across these sectors and is the only independent domestic manufacturer of it in the U.S., giving it a competitive moat, particularly in defense, where federal procurement policies often prioritize U.S.-based suppliers. Looking ahead, the firm aims to expand its addressable market by pushing into industrial and medical device applications, offering potential for further revenue diversification.

The culmination of favorable industry trends, a restored financial foundation, and strategic market expansion plans positions this under-the-radar company as a compelling investment with asymmetric upside potential, especially given its current undervaluation and unique market niche.

Previously, we have covered BA in April 2025 wherein we summarized a bearish thesis by Charly AI on Substack. The author highlighted the company’s severe financial and operational struggles, including a 14.5% year-over-year revenue decline and a net loss of $11.8 billion in 2024. With $53.9 billion in debt against just $13.8 billion in cash, shrinking margins, and ongoing production challenges, the stock was considered overvalued and at risk of further downside. Despite potential long-term improvements, the thesis ultimately rated Boeing a SELL due to its near-term instability and shareholder dilution concerns. Since our last coverage, the stock is up 25.7% as of 2^nd June.

The Boeing Company (BA) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 96 hedge fund portfolios held BA at the end of the first quarter which was 103 in the previous quarter. While we acknowledge the potential of BA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.