Shares of Boeing (BA) traded down more than 8% on Monday, hitting lows unseen since the early days of the pandemic. Investors are increasingly pricing in a recession, and expressing their belief that Boeing will not be a safe haven stock.
A Puget Sound Business Journal reported that shares of Boeing could also be under pressure due to warnings the company is running out of time to get expedited Federal Aviation Administration (FAA) certification for a new variant of the 737 MAX.
The company today trades barely above a price-to-sales ratio of 1, well below the multiple of other aerospace companies including Lockheed Martin and Raytheon Technologies. The company enjoys a global duopoly with Airbus that should drive commercial sales for decades to come. And while the outlook on the quarters to come is gloomy, it is nowhere near as dire as it was in April 2020, the last time Boeing shares traded at these lows.
