Analysis of the Profit Potential of Boeing Stock Over the Last 5 Years
The Boeing stock (Ticker: BA) is one of the best-known and most significant stocks in the aerospace and defense sector. For private investors who invested in Boeing five years ago, it is particularly interesting to understand how the profit potential has developed and what factors played a role.
1. Stock Performance of Boeing from 2018 to 2023/2024
- 2018–2019: The stock initially showed solid performance with an upward trend due to strong order books and positive market sentiment in the aerospace sector.
- End of 2018 to early 2020: Early warning signs appeared due to problems with the 737 MAX model, which was grounded worldwide following two fatal crashes. This led to significant losses.
- 2020 (Pandemic Year): COVID-19 hit the airline industry hard – air travel plummeted, and supply chains were disrupted. The Boeing stock fell sharply, partially by more than 50% compared to the previous year.
- 2021–2023: Recovery began slowly with the re-approval of the 737 MAX as well as increasing demand for planes with the recovery of travel traffic. However, the stock remained volatile due to geopolitical uncertainties and supply chain issues.
Example of stock performance:
| Year | Average Annual Price (approximately) | Change vs Previous Year |
|---|---|---|
| End of 2018 | approx. $350 | – |
| End of 2019 | approx. $340 | -3% |
| End of 2020 | approx. $190 | -44% |
| End of 2021 | approx. $220 | +16% |
| End of 2022 | approx. $210 | -5% |
| Early/Mid 2024* | approx. $230-$250* |
* Values may fluctuate depending on market conditions.
2. Dividend Yield & Distributions
Boeing traditionally paid dividends to shareholders, however, these were suspended during the crisis (especially from March/April 2020) to secure liquidity.
For investors, this meant:
- Loss of regular dividend income
- Focus on capital gains for returns
3. Fundamental Factors & Profit Potential
Positive:
- Large order backlogs for commercial aircraft
- Strong defense segment with stable revenues
- Technological innovations and new models in development
- Recovery of global air traffic post-COVID
Negative:
- High costs due to production delays & quality issues (737 MAX)
- Geopolitical risks (trade conflicts, sanctions)
- Volatile raw material prices affecting production costs
- Competition from Airbus & new market entrants
Conclusion for Investors: Profit Potential Invested Five Years Ago vs Today
For those who invested in Boeing around early to mid-April 2019:
- They would have had to experience a strong price crash – especially during the COVID pandemic.
- They had to forgo dividends or did not receive regular distributions since the start of the crisis.
- They might currently realize moderate gains again despite setbacks, or at least have approximately recovered their original capital investment – depending on the exact time of purchase.
- Long-term potential remains, thanks to Boeing’s market position; however, short-term fluctuations are high.