Topic: Growth Stocks

Wall Street Stock Forecaster Hotline – Friday, February 12, 2016

Article Excerpt

BOEING CO., $108.63, New York symbol BA, fell 11% this week on news that the U.S. Securities and Exchange Commission is investigating how the company accounts for the development costs of its 747 and 787 jet airliners. Accounting rules let Boeing spread the huge upfront costs of designing and building new planes over several years, instead of recognizing these outlays when they occur. The SEC is looking into Boeing’s estimate of these costs, as well as its projected aircraft sales. If the company has to change these estimates, that could take it longer to recoup its development costs. Boeing’s long-term outlook remains bright. It delivered 762 commercial planes in 2015, up from 723 in 2014. Its backlog of 5,800 planes is worth $432 billion, or 4.5 times its 2015 revenue of $96.1 billion. However, the stock will likely remain under pressure until the SEC wraps up its investigation. OUR RECOMMENDATION: Boeing is now a hold. Boeing recent coverage Hotline for December 18, 2015 Hotline for December…