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Boeing (BA) Stock Gains on $1.1B Aircraft Order Booking

Aerospace giant, The Boeing Co.BA announced that it has booked orders for 11 new jetliners worth $1.1 billion at list prices. The company is trying to meet its sales target of 755-760 jetliners in 2015, for which it currently needs another 180 orders.

Shares gained 1.5% following the news and finally closed at $146.47.

Earlier this week, Airbus Group SE EADSY announced that it had booked 1,007 net orders up to November. Although Boeing's total of 575 net orders as of yesterday compares unfavorably to this figure, it might be able to beat Airbus in terms of deliveries in 2015.

Recently, Boeing received orders for 10 737 planes for Turkish Airlines and one 767 for FedEx Corporation FDX . On the other hand, order for four 737 NG jetliners were canceled.

Meanwhile, Boeing unveiled the first 737 MAX airplane on Tuesday. The 737 MAX is the fourth generation of the 737 family of aircraft, replacing the 737 Next Generation. It is 20% more fuel efficient than its predecessors, with 8% less operating costs than A320neo. The aircraft is on track for its first flight in early 2016 with operations starting in 2017.

The U.S. aerospace giant reported strong delivery numbers for the first nine months of 2015 on the back of continued growth of its 787 Dreamliner and Next Generation 737 single-aisle jetliners, beating its archrival, Airbus Group. Total commercial airplane deliveries were 580 during this period. The company's 737 jet deliveries were 375.

Boeing is the largest aircraft manufacturer in the world in terms of revenue, orders and deliveries. Its revenue exposure is spread across more than 90 countries around the globe. Demand for Boeing's commercial airplanes is on the rise due to a steady improvement in passenger and freight traffic on the back of a recovering global economy. Boeing's commercial revenues increased 10% year over year in the third quarter of 2015 on as many as 199 commercial deliveries.

Zacks Rank

Boeing currently has a Zacks Rank #2 (Buy). Another favorably placed stock in the aerospace and defense sector is Huntington Ingalls Industries, Inc. HII with the same rank as Boeing.

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BOEING CO (BA): Free Stock Analysis Report

FEDEX CORP (FDX): Free Stock Analysis Report

HUNTINGTON INGL (HII): Free Stock Analysis Report

AIRBUS GROUP NV (EADSY): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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