iShares U.S. Aerospace & Defense ETF (BATS: ITA)

에 대한 최신 뉴스 iShares U.S. Aerospace & Defense ETF (BATS:ITA)

iShares U.S. Aerospace & Defense ETF

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The Fund seeks to track the investment results of the Dow Jones U.S. Select Aerospace & Defense Index; the Underlying Index, which measures the performance of the aerospace and defense sector of the U.S. equity market, as defined by S&P Dow Jones Indices LLC; the Index Provider or SPDJI.

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iShares US Aerospace & Defense ETF

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미국이 수요일 오전 B-1B 폭격기를 한반도 상공으로 비행했다. 남북한 지역의 긴장이 더욱 고조되는 가운데 방산업체와 상장지수펀드(ETF)에 어떤 영향을 미칠까요? 사건의 전말 (What Happened): AP통신에 따르면 한국군이 이번 폭격 훈련을 발표했다.

미국, 한반도 상공에서 B-1B 폭격기 비행: 방산업체와 관련 ETF에 미치는 영향은?

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제트기 동체의 주요 공급업체인 스피릿 에어로시스템즈 홀딩스(NYSE:SPR)는 캔자스주 위치타 공장에서 직원을 400~450명 감원한다고 밝혔다. 이번 감원은 스피릿의 최대 고객인 보잉(NYSE:BA)의 생산 감소에 대한 대응이다.

스피릿 에어로시스템즈, 보잉의 생산 곤란과 연관하여 수백 명을 정리해고할 예정

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보잉(NYSE:BA)은 737 맥스(MAX)의 생산을 늘리기 위한 지속적인 노력으로 인해 4월 상업용 항공기 배송이 감소했다고 보고했다. 4월에 이 회사는 24대의 상업용 비행기를 인도했는데, 이는 작년 26대에서 줄어든 것이다.

보잉의 상업용 비행기 납품은 제조 조정으로 인해 4월에 감소

Sparkline Intangible Value ETF

INDUSTRIAL TECH ACQUISITIONS II INC COM CL A

INDUSTRIAL TECH ACQUISITIONS II INC UNIT 1 COM CL A & 1/2 WT EXP

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INDO TAMBANGRAYA UNSP/ADR by PT Indo Tambangraya Megah

PT Indo Tambangraya Megah Tbk

Goldman Sachs analyst Noah Poponak stated that their analysis suggests that The Boeing Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) (<a target="_blank" href="https://www.benzinga.com/quote/BA/analyst-ratings" rel="noreferrer noopener">Buy rating, $243 price target</a>) is expected to achieve 43 deliveries in June, comprising 34 737 MAX, three 787s, and six other aircraft.
Of these, around 26 of the 737 MAX deliveries are newly produced, with the remainder sourced from inventory. The numbers show an improvement in both total deliveries and production rates compared to earlier in the year, writes the analyst.
Boeing&#8217;s 2024 strategy starts with prioritizing product quality over immediate production ramp-up, intending to gradually boost output later in the year to meet demand, says the analyst.
Poponak says that June&#8217;s numbers mark a preliminary indicator that could support Boeing&#8217;s approach. Feedback from suppliers suggests that the company maintains monthly MAX deliveries in the 30s and mid-single digits for the 787, aligning with its strategic goals.
The analyst&#8217;s target price of $243 is based on achieving a 5.0% FCF yield on the projected 2025 free cash flow per share.
Poponak estimates EPS of $1.76 in FY24, $8.29 in FY25 and $13.52 in FY26.
However, the analyst cites risks related to air traffic growth pace, production ramp-up challenges in the supply chain, and operational performance in defense contracts.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/07/39602971/boeing-receives-order-for-four-777-freighters-from-turkish-airlines" rel="noreferrer noopener">Boeing Receives Order For Four 777 Freighters From Turkish Airlines</a>
This week, Boeing entered into a definitive agreement to purchase Spirit AeroSystems Holdings, Inc.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPR#NYSE">SPR</a>) at $37.25 a share, a 30% premium to Spirit&#8217;s<a target="_blank" href="https://www.benzinga.com/news/24/07/39578138/why-boeing-shares-are-moving-higher-monday" rel="noreferrer noopener"> closing stock price on February 29</a>.
Boeing stock has lost around 12% in the last 12 months.&nbsp;Investors can gain exposure to the stock via&nbsp;IShares U.S.&nbsp;Aerospace &amp; Defense ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>)&nbsp;and&nbsp;Invesco Aerospace&nbsp;&amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PPA#NYSE">PPA</a>).
Price Action: BA shares closed down 0.60% at $184.31 on Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock
Read Next:
<ul>
<li><a href="https://www.benzinga.com/news/24/07/39597632/spirit-aerosystems-ceo-a-candidate-to-lead-boeing-investors-focus-on-top-post" target="_blank" rel="noreferrer noopener">Spirit AeroSystems CEO A Candidate To Lead Boeing? Investors Focus On Top Post</a></li>
</ul>

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Boeing Set For Improved Deliveries And Production Rates, Goldman Sachs Analyst Says

Wall Street is in great shape this year. The S&amp;P 500 has surged 14.5%, the Nasdaq Composite has jumped 18.1% and the Dow Jones has nudged up 3.8%, while the Rusell 2000 is up only 1%. In the ongoing bull market, technology stocks have been at the forefront, driven by an unexpected surge in artificial intelligence interest among investors.
However, with the rally expanding over the last few months, sectors beyond technology have started to reclaim prominence, indicating a widening of the market breadth. Analysts see more gains in the cards for Wall Street. However, many investors have overvaluation concerns after such a stupendous rally.
Against this backdrop, some investors may be a bit clueless about finding sectors that are currently hot. For them, we have presented four sectors that boast an upbeat Zacks Rank. These sectors and their ETFs could be great picks now.
<h3>Sectors &amp; ETFs in Focus</h3>
Against this backdrop, below we highlight a few sectors and their ETFs that could be up for gains in the third quarter. To do so, we depend on the Zacks Sector Rank.&nbsp;The Zacks Sector Rank is determined by calculating the average Zacks Rank for all the stocks in the sector and then assigning an ordinal rank to it.
For example, a sector with an average Zacks Rank of 1.6 is better than a sector with an average Zacks Rank of 2.3. So, the sector with the better average Zacks Rank would get a better Zacks Sector Rank. Zacks classifies all stocks into one of 16 sectors.
If a sector has the best average Zacks Rank, it would be considered the top sector (1 out of 16), which would place it in the top 1% of Zacks Rank Sectors. The top 8 Zacks Ranked Sectors would be in the top 50% of sectors, whereas the bottom 8 Zacks Ranked Sectors would be in the bottom 50% of sectors. The sectors mentioned below have upbeat Zacks ranks.
Let&#39;s find out!
<h3>Industrials &ndash; Zacks Sector Rank #2</h3>
The industrials sector is set to benefit as business conditions have improved and demand seems to be solid. About 70% of the industries fall under the top-ranked category. Electronics, procurement and fabrication, steel-pipe and tube, and engineering-R&amp;D services are some of the industries under this category.
The sector&#39;s forward P/E is currently 17.25X, lower than the S&amp;P 500&#39;s 18.51X. The sector&#39;s projected EPS growth is 8.27% versus 6.12% growth likely to be seen for the S&amp;P 500. Industrial Select Sector SPDR (ARCA:XLI) has a Zacks Rank #2 (Buy).
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/ad/70032.jpg?v=1560007933" /> 
Image Source: Zacks Investment Research
<h3>Construction &ndash; Zacks Sector Rank #3</h3>
Thanks to the double whammy of high prices and still high mortgage rates,the U.S. housing sector is in the doldrums currently. But the overall construction sectorlooks attractive given that many of the underlying industries&#39; earnings estimates have seen more positive revisions than negative. Homebuilders, air conditioners and heating, wood, mobile homes and RV builders deserve special mention in this regard.
The construction sector is currently undervalued than the S&amp;P 500 and its projected EPS growth is higher than the S&amp;P 500. Investors can target Invesco Building &amp; Construction ETF (ARCA:PKB) to bet on the sector.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/12/70033.jpg?v=1998333387" /> 
Image Source: Zacks Investment Research
<h3>Aerospace &ndash; Zacks Sector Rank #5</h3>
The sector&#39;s performance has been lackluster in 1H 2024, as it lost by 4.8%. The sector has been disliked by investors probably because it is slightly overvalued than the S&amp;P 500 and its historical EPS growth fell short of the S&amp;P 500.
However, the scenario may change in the coming days as the projected EPS growth rate of the aerospace industry is 18.19% (versus the S&amp;P 500). Currently, the fundamentals behind the sector are positive as the sector tends to benefit from rising geopolitical tensions, which result in increased defense spending worldwide.
The demand profile in the sector is on an upward trajectory. iShares U.S. Aerospace &amp; Defense ETF (BATS: <a class="ticker" href="https://www.benzinga.com/stock/ita#BATS">ITA</a>) has a Zacks Rank #2.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/b1/70030.jpg?v=1424789890" /> 
Image Source: Zacks Investment Research
<a href="https://www.zacks.com/stock/news/2296154/3-sector-etfs-to-buy-for-q3?cid=CS-BENZ-FT-etf_news_and_commentary-2296154">To read this article on Zacks.com click here.</a>

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Investors are zeroing in on Boeing Co&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) <a href="https://www.benzinga.com/24/07/39567358/boeing-to-acquire-spirit-aerosystems-for-4-7b-after-months-of-negotiations">acquisition of its supplier</a>, Spirit AeroSystems Holdings Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPR#NYSE">SPR</a>), and whether it will affect the airplane manufacturer&#8217;s ongoing search for a new CEO.
What Happened: The search follows CEO Dave Calhoun&#8216;s announcement in March that he <a href="https://www.benzinga.com/news/large-cap/24/03/37911999/boeing-ceo-dave-calhoun-to-resign-in-2024-as-part-of-major-leadership-overhaul-eyes-of-the-world-a">would step down by the end of the year</a>. Potential candidates include Patrick Shanahan, Spirit AeroSystems&#8217; current CEO, Boeing COO Stephanie Pope, and board chair Steve Mollenkopf.
Patrick Shanahan, known for his previous tenure at Boeing where he earned the nickname &#8220;Mr. Fix-It,&#8221; is considered a significant contender for the CEO position, reported Reuters.
Shanahan took over as Spirit&#8217;s CEO last October, aiming to stabilize operations and improve cash flow. However, a January incident involving a<a href="https://www.benzinga.com/24/01/36750759/i-am-angry-says-alaska-airlines-ceo-on-boeing-737-max-9-mid-air-blowout-reveals-many-loose-bolts-fou"> mid-air panel blowout on a 737 MAX</a> has posed challenges to his turnaround plans.
Following the incident, Spirit committed to investing in autonomous technology, increasing mechanic training, and enhancing inspection processes. 
Also Read:<a href="https://www.benzinga.com/markets/equities/24/07/39570406/justice-department-moves-to-charge-boeing-over-fatal-crashes-report"> Justice Department Moves To Charge Boeing Over Fatal Crashes: Report</a>
Why It Matters: In May, Spirit announced <a href="https://www.benzinga.com/m-a/24/05/38894593/spirit-aerosystems-to-lay-off-hundreds-as-boeing-struggles-with-production">plans to lay off several hundred workers</a> in Wichita, Kansas, as part of efforts to shore up liquidity.
Despite these challenges, some industry insiders believe Shanahan&#8217;s long association with Boeing may affect his chances of securing the top job.
Boeing&#8217;s acquisition of Spirit AeroSystems, set to close by mid-2025, reflects broader changes within the company. Ernest Arvai, president of AirInsight Group, noted that while Shanahan&#8217;s deep ties to Boeing&#8217;s culture are evident, the company may need fresh leadership to drive cultural change. 
Price Action: Boeing stock has lost more than 11% in the last 12 months. Investors can gain exposure to the stock via IShares U.S. Aerospace &amp; Defense ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>) and Invesco Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PPA#NYSE">PPA</a>).
BA shares are trading lower by 0.43% at $185.90 in premarket at last check Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/news/24/06/39503499/faa-issues-new-safety-directive-for-boeing-757-200-over-cracking-concerns">FAA Issues New Safety Directive For Boeing 757-200 Over Cracking Concerns</a></li>
</ul>

Spirit AeroSystems CEO A Candidate To Lead Boeing? Investors Focus On Top Post

GE Aerospace (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GE#NYSE">GE</a>) disclosed that it has extended CEO Larry Culp&#8217;s tenure until the end of 2027, with the option for an additional one-year <a target="_blank" href="https://d18rn0p25nwr6d.cloudfront.net/CIK-0000040545/d156f8b6-106e-4fb1-8473-bb3d1ab8ed50.pdf" rel="noreferrer noopener">extension</a>.
Notably, Culp&#8217;s employment agreement was earlier scheduled to end on August 17, 2024.
The decision follows reports from two weeks ago that Larry Culp had declined an offer from The Boeing Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) to become its CEO, reported Reuters.
Related: <a target="_blank" href="https://www.benzinga.com/markets/equities/24/06/39384624/boeings-search-for-new-ceo-persists-as-calhoun-faces-congressional-hearing" rel="noreferrer noopener">Boeing&#8217;s Search For New CEO Persists As Calhoun Faces Congressional Hearing</a>
As per the report, during his tenure, GE&#8217;s debt decreased by over $100 billion, cash flow quadrupled, and market capitalization grew by approximately $100 billion.
Recently, GE&nbsp;announced that the U.S. Army had accepted two T901-GE-900 engines for integration and testing on the UH-60 Black Hawk under&nbsp;the <a target="_blank" href="https://www.benzinga.com/markets/equities/24/06/39553539/ge-aerospace-delivers-t901-engines-to-us-army-for-black-hawk-testing-details" rel="noreferrer noopener">Improved Turbine Engine Program</a>.
Also, GE Aerospace was in the headlines for developing a hybrid electric engine, aiming to power<a target="_blank" href="https://www.benzinga.com/news/24/06/39398463/ge-aerospace-aims-to-slash-carbon-emissions-in-sky-with-hybrid-electric-engines" rel="noreferrer noopener"> narrow-body jets by the mid-2020s.</a>
GE stock has gained over 85% in the last 12 months. Investors can gain exposure to the stock via IShares U.S. Aerospace &amp; Defense ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>) and TCW Transform Systems ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NETZ#NYSE">NETZ</a>).
Price Action: GE shares are up 1.18% at $160.84 at the last check Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock
Read Next:
<ul>
<li><a href="https://www.benzinga.com/news/24/06/39398463/ge-aerospace-aims-to-slash-carbon-emissions-in-sky-with-hybrid-electric-engines" target="_blank" rel="noreferrer noopener">GE Aerospace Aims To Slash Carbon Emissions In Sky With Hybrid Electric Engines</a></li>
</ul>

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Steering the Course: GE Aerospace Keeps CEO Culp At The Helm Through 2027

Boeing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) reportedly faces serious criminal charges from the U.S. Justice Department related to two <a target="_blank" href="https://www.benzinga.com/government/20/09/17529184/boeing-and-faa-share-blame-for-deadly-737-max-crashes-congressional-report" rel="noreferrer noopener">fatal 737 MAX crashes</a>, with the department expected to offer Boeing a plea agreement, which includes a substantial financial penalty and the imposition of an independent monitor to oversee the company&#8217;s safety and compliance practices for three years.
The Justice Department&#8217;s offer is non-negotiable, giving Boeing until the end of the week to respond. Should Boeing decline the plea deal, prosecutors plan to bring the company to trial, reported Reuters.
The decision to charge Boeing comes after the company <a target="_blank" href="https://www.benzinga.com/markets/equities/24/06/39307378/boeing-insists-on-adherence-to-legal-agreement-post-737-max-crashes-report" rel="noreferrer noopener">allegedly violated a 2021 agreement </a>that shielded it from prosecution over the 2018 and 2019 crashes, which resulted in 346 deaths.
The plea agreement would compel Boeing to admit to conspiring to defraud the U.S. Federal Aviation Administration (FAA) regarding these incidents.
If Boeing agrees to the plea, it would face financial loss, including a $487.2 million penalty, only half of which is new since previous payments are credited.
Also Read: <a target="_blank" href="https://www.benzinga.com/24/07/39567358/boeing-to-acquire-spirit-aerosystems-for-4-7b-after-months-of-negotiations" rel="noreferrer noopener">Boeing To Acquire Spirit Aerosystems For $4.7B After Months Of Negotiations</a>
The proposed agreement also includes potential restitution and a three-year probation period. Moreover, Boeing&#8217;s ability to secure government contracts, including those with the U.S. military, could be jeopardized, although companies with felony convictions can apply for waivers.
Victims&#8217; families were informed of the Justice Department&#8217;s decision during a call and expressed anger at the proposed plea deal, considering it <a target="_blank" href="https://www.benzinga.com/news/24/06/39408346/boeing-737-max-crash-victim-families-call-for-25b-fine-as-ceo-dave-calhoun-gets-grilled-by-senators" rel="noreferrer noopener">insufficient to hold Boeing accountable</a>.
The Justice Department&#8217;s push for a guilty plea follows recent safety concerns, including a <a target="_blank" href="https://www.benzinga.com/markets/equities/24/01/36526743/over-170-boeing-737-max-9s-grounded-as-alaska-air-passengers-recall-terrifying-incident" rel="noreferrer noopener">January incident where a panel blew off </a>a 737 MAX 9 jet during an Alaska Air Group Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALK#NYSE">ALK</a>) flight.
This incident occurred just days before Boeing&#8217;s deferred prosecution agreement from 2021 expired.
In June, U.S. lawmakers questioned Boeing&#8217;s CEO Dave Calhoun about the company&#8217;s safety record. Family members&#8217; lawyers referenced these criticisms in their <a target="_blank" href="https://www.benzinga.com/government/24/06/39387675/boeing-stock-grounded-after-ceo-testimony-to-congress-issues-before-us-today-have-real-human-consequ" rel="noreferrer noopener">push for tougher penalties and prosecution</a>.
Boeing stock has lost more than 13% in the last 12 months.&nbsp;Investors can gain exposure to the stock via&nbsp;IShares U.S.&nbsp;Aerospace &amp; Defense ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>) and Invesco Aerospace&nbsp;&amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PPA#NYSE">PPA</a>).
Price Action: BA shares closed lower by 0.27% at $182.01 on Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Related Read: <a href="https://www.benzinga.com/markets/equities/24/06/39553077/southwest-airlines-faces-scrutiny-over-recent-closed-runway-takeoff-report" target="_blank" rel="noreferrer noopener">Southwest Airlines Faces Scrutiny Over Recent Closed Runway Takeoff: Report</a>
Photo via Shutterstock

Justice Department Moves To Charge Boeing Over Fatal Crashes: Report

Boeing Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) is facing significant financial and production challenges following a January incident where a panel <a target="_blank" href="https://www.benzinga.com/24/01/36750759/i-am-angry-says-alaska-airlines-ceo-on-boeing-737-max-9-mid-air-blowout-reveals-many-loose-bolts-fou" rel="noreferrer noopener">blew out mid-air on a 737 MAX jet</a>.
Despite these issues, the International Association of Machinists and Aerospace Workers (IAM) reportedly remains resolute in their readiness to strike if necessary to secure better retirement benefits and wage increases for over 30,000 workers in Washington state.
The IAM is pushing for wage hikes exceeding 40% over the next three to four years and enhanced retirement benefits, reported Reuters.
Union president Jon Holden of IAM District 751 emphasized that workers are committed to achieving a favorable agreement, even if it means striking.
The strike authorization vote is set for July 17, but any strike action would not occur until after the current contract expires on September 12.
During ongoing negotiations, Boeing has resisted union demands for higher wages and a seat on the company&#8217;s board of directors.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/06/39503499/faa-issues-new-safety-directive-for-boeing-757-200-over-cracking-concerns" rel="noreferrer noopener">FAA Issues New Safety Directive For Boeing 757-200 Over Cracking Concerns</a>
Holden stated, &#8220;They&#8217;re not open to it at this point. But it&#8217;s important for us to continue to push because it is about ensuring that those at the highest level of this company understand that they are missing the voice of workers.&#8221;
The crisis deepened for Boeing after the January incident <a target="_blank" href="https://www.benzinga.com/government/24/02/36965801/boeing-737-max-door-plug-that-flew-off-alaska-air-flight-missing-4-key-bolts-preliminary-ntsb-report" rel="noreferrer noopener">involving an Alaska Airlines 737 MAX</a>.
The company&#8217;s CFO indicated that <a target="_blank" href="https://www.benzinga.com/news/24/05/38992323/boeing-stock-falls-as-cfo-forecasts-negative-cash-flow-delivery-delays-amid-regulatory-scrutiny" rel="noreferrer noopener">Boeing expects to burn cash in 2024</a> and does not foresee an increase in deliveries for the second quarter.
Additionally, the U.S. government sanctioned Boeing for disclosing details of the <a target="_blank" href="http://Boeing Faces Sanctions From NTSB Over Unauthorized Release Of 737 MAX Investigation Details" rel="noreferrer noopener">panel blowout investigation during a media event.</a>
Workers demonstrated at Boeing&#8217;s Renton plant to coincide with a media tour showcasing quality improvements. Holden mentioned that the union has yet to see Boeing&#8217;s 90-day quality improvement plan, although Boeing claims to have discussed it with him.
Boeing stock has lost more than 13% in the last 12 months.&nbsp;Investors can gain exposure to the stock via&nbsp;IShares U.S.&nbsp;Aerospace &amp; Defense ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>) and Invesco Aerospace&nbsp;&amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PPA#NYSE">PPA</a>).
Price Action: BA closed higher by 2.25% at $182.51 on Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Read Next: <a href="https://www.benzinga.com/markets/equities/24/06/39452259/boeing-risks-criminal-charges-as-us-prosecutors-reportedly-target-compliance-failures-post-737-m" target="_blank" rel="noreferrer noopener">Boeing Risks Criminal Charges As US Prosecutors Reportedly Target Compliance Failures Post-737 MAX Crashes</a>
Photo via Shutterstock

Boeing's Labor Countdown: Union Stands Firm As Strike Vote Looms

The Federal Aviation Administration (FAA) has issued a new airworthiness directive targeting specific structural issues in 13 Boeing Co&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) 757-200 airplanes registered in the U.S., aiming to mitigate the risk of in-flight problems due to identified fatigue cracking.
The directive follows reports of potential cracking around the lavatory service panels on these aircraft, according to a Reuters report.
The FAA has pinpointed excessive stress concentrations at the lavatory service panel access pan, the fuselage skin, and the stringer 22 attachment point as the primary concern.
If unaddressed, these issues could lead to significant in-flight depressurization and compromise the aircraft&#8217;s structural integrity, emphasizing the critical nature of these repairs.
Airworthiness directives like this one are legally binding rules issued by the FAA to rectify unsafe conditions discovered in aircraft.
Also Read:&nbsp;&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/06/39496118/elon-musk-takes-a-dig-at-dave-calhoun-amid-boeings-starliner-crisis-ceo-of-an-aircraft-company-shoul" rel="noreferrer noopener">Elon Musk Takes A Dig At Dave Calhoun Amid Boeing&#8217;s Starliner Crisis: &#8216;CEO Of An Aircraft Company Should Know How To Design Aircraft, Not Spreadsheets&#8217;</a>
They require aircraft operators to perform specified inspections or repairs to ensure continued safety and compliance.
This particular directive affects Boeing 757-200 planes that have undergone modifications under specific supplemental-type certificates. These modifications have been identified as contributing factors to the stress that leads to cracking.
Boeing, under scrutiny after multiple flight incidents, including the Alaska Air Group Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALK#NYSE">ALK</a>) blowout, faces a <a target="_blank" href="https://www.benzinga.com/news/24/03/37580235/boeing-faces-enormous-scrutiny-after-recent-mishaps-report" rel="noreferrer noopener">criminal investigation by the Justice Department.</a>
Also, Boeing may face potential criminal charges as U.S. prosecutors reportedly recommend legal action against the aerospace giant after the company allegedly breached a 2021 deferred prosecution agreement <a target="_blank" href="https://www.benzinga.com/markets/equities/24/06/39452259/boeing-risks-criminal-charges-as-us-prosecutors-reportedly-target-compliance-failures-post-737-m" rel="noreferrer noopener">following two fatal 737 MAX crashes.</a>
Boeing stock has lost more than 14% in the last 12 months.&nbsp;Investors can gain exposure to the stock via&nbsp;IShares U.S.&nbsp;Aerospace &amp; Defense ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>) and Invesco Aerospace&nbsp;&amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PPA#NYSE">PPA</a>).
Price Action: BA shares are trading lower by 0.08% at $174.97 at the last check on Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Read Next: <a href="https://www.benzinga.com/markets/equities/24/06/39470596/boeing-offers-to-acquire-spirit-aerosystems-in-35-per-share-deal-funded-mostly-by-stock-report" target="_blank" rel="noreferrer noopener">Boeing Offers To Acquire Spirit Aerosystems In $35 Per Share Deal Funded Mostly By Stock: Report</a>
Photo via Shutterstock.

Regulations

FAA Issues New Safety Directive For Boeing 757-200 Over Cracking Concerns

Stifel analyst Bert W. Subin expressed his view on The Boeing Company&#8217;s&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) reported proposition to acquire Spirit Aerosystems Holdings, Inc.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPR#NYSE">SPR</a>) in a deal valuing the <a target="_blank" href="https://www.benzinga.com//node/39470596" rel="noreferrer noopener">company at&nbsp;approximately $35 per share</a>.
Subin says that if confirmed, the buyout aligns with their expectation that Boeing would aim to offer a price reflecting a reasonable premium compared to Spirit&#8217;s pre-announcement trading level (estimated around 20%, which would represent approximately 22%).
The analyst adds that they view the $35 per share offer as reasonable for both Boeing and Spirit AeroSystems and would value Spirit AeroSystems at around $4.1 billion.
Based on Boeing&#8217;s closing price of $179.10 on Monday, acquiring Spirit AeroSystems at this price would require approximately 22.7 million shares of Boeing (~4% dilution), assuming an all-equity transaction, with potential refinancing or repayment of debt afterward, writes the analyst.
Related: <a target="_blank" href="https://www.benzinga.com//node/39430634" rel="noreferrer noopener">Boeing Nears Deal To Reacquire Spirit AeroSystems In Wake Of Airbus Negotiations: Report</a>
Apart from this, Airbus SE (OTC:<a class="ticker" href="https://www.benzinga.com/stock/EADSY#OTC">EADSY</a>), Boeing&#8217;s European competitor,&nbsp;revised&nbsp;its 2024 adjusted earnings lower by roughly EUR5.5 billion (approximately $5.9 billion), which <a target="_blank" href="https://www.benzinga.com/news/24/06/39484621/whats-going-on-with-boeing-and-spirit-aerosystems-stocks" rel="noreferrer noopener">weighs down on Boeing shares today</a>.
Truist analyst Michael Ciarmoli writes that they anticipated ongoing challenges for commercial aerospace OEMs this quarter.
However, with this downward revision and recent production delays at Boeing, the analyst anticipates these factors to further amplify downward revisions throughout the supply chain.
Ciarmoli reaffirmed confidence in the long-term recovery of commercial aerospace OEMs, having thoroughly evaluated exposure across platforms and identified potential upside within the coverage universe.
Boeing stock has lost around&nbsp;15%&nbsp;in the last 12 months.&nbsp;Investors can gain exposure to the stock via&nbsp;IShares U.S.&nbsp;Aerospace &amp; Defense ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>) and&nbsp;Invesco Aerospace&nbsp;&amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PPA#NYSE">PPA</a>).
Price Action: BA shares are down&nbsp;2.8%&nbsp;at&nbsp;$174.08&nbsp;at the last check Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock

Aerospace Industry Faces More Downgrades, But Recovery Expected, Says Analyst

Boeing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) risks potential criminal charges as U.S. prosecutors reportedly recommend legal action against the aerospace giant, after the company allegedly breached a 2021 deferred prosecution agreement following two fatal 737 MAX crashes.
The Justice Department has until July 7 to decide on prosecuting Boeing, which could result in huge penalties. The charges stem from accusations that Boeing violated its agreement by failing to adhere to compliance measures set out in 2021, and the recommendation of prosecutors handling the case has not been previously disclosed, reported Reuters.
The original deal was intended to shield Boeing from a conspiracy to commit fraud charge if it met specific terms, including compliance reforms and regular updates.
In 2021, Boeing avoided prosecution by agreeing to a $2.5 billion settlement over allegations it deceived the Federal Aviation Administration (FAA) about the 737 MAX jets.
The settlement required Boeing to implement rigorous compliance protocols and to provide ongoing reports on its practices. However, in May, officials concluded that <a target="_blank" href="https://www.benzinga.com/news/24/05/38845748/justice-department-accuses-boeing-of-2021-settlement-breach" rel="noreferrer noopener">Boeing had failed to meet these obligations</a>.
Also Read: <a target="_blank" href="https://www.benzinga.com/markets/equities/24/06/39430634/boeing-nears-deal-to-reacquire-spirit-aerosystems-in-wake-of-airbus-negotiations-report" rel="noreferrer noopener">Boeing Nears Deal To Reacquire Spirit AeroSystems In Wake Of Airbus Negotiations: Report</a>
Boeing has denied any wrongdoing, asserting that it has <a target="_blank" href="https://www.benzinga.com/markets/equities/24/06/39307378/boeing-insists-on-adherence-to-legal-agreement-post-737-max-crashes-report" rel="noreferrer noopener">adhered to the agreement&#8217;s terms</a>. Despite this, discussions between Boeing and the Justice Department continue, with no final decision reached on whether to file charges.
Potential outcomes could include extending the original agreement by another year or introducing stricter compliance measures.
Should the Justice Department pursue criminal charges, Boeing could face severe repercussions, including financial penalties and possible restrictions on its business operations.
Families of the 737 MAX crash victims have long criticized the 2021 settlement, urging prosecutors to impose a fine of $25 billion and to<a target="_blank" href="https://www.benzinga.com/news/24/06/39408346/boeing-737-max-crash-victim-families-call-for-25b-fine-as-ceo-dave-calhoun-gets-grilled-by-senators" rel="noreferrer noopener"> hold Boeing accountable through criminal prosecution</a>.
At a recent Senate hearing, Boeing CEO Dave Calhoun acknowledged the company&#8217;s safety failings and <a target="_blank" href="https://www.benzinga.com/government/24/06/39387675/boeing-stock-grounded-after-ceo-testimony-to-congress-issues-before-us-today-have-real-human-consequ" rel="noreferrer noopener">expressed apologies to the victims&#8217; families.</a>
Boeing stock has lost more than 14% in the last 12 months.&nbsp;Investors can gain exposure to the stock via&nbsp;IShares U.S.&nbsp;Aerospace &amp; Defense ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>) and Invesco Aerospace&nbsp;&amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PPA#NYSE">PPA</a>).
Price Action: BA shares closed higher by 0.15% at $176.56 on Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Read Next: <a href="https://www.benzinga.com/news/24/06/39335955/boeing-and-airbus-under-faa-investigation-for-authenticity-of-titanium-parts-in-some-jets-report" target="_blank" rel="noreferrer noopener">Boeing And Airbus Under FAA Investigation For Authenticity Of Titanium Parts In Some Jets: Report</a>
Photo Courtesy: Tada Images On Shutterstock.com

Boeing Risks Criminal Charges As US Prosecutors Reportedly Target Compliance Failures Post-737 MAX Crashes

President Joe Biden has let up on restrictions that disallowed Ukraine&#8217;s military from sending U.S.-provided munitions into Russia in an effort to prevent <a href="https://www.benzinga.com/topic/russia-ukraine-war">further escalation of the war</a>.
According <a href="https://apnews.com/article/russia-ukraine-war-us-missiles-de0597baa92a722779769efdff580732">to</a> the Associated Press, Russia has been firing on Ukrainian targets from inside its border, treating its area as a "safe zone," said Maj. Gen. Pat Ryder, Pentagon press secretary.
"As we see those forces conducting those types of operations from across the border, we've explained Ukraine can and does have the right to fire back to defend themselves," Ryder told reporters Thursday.
This includes firing longer-range missiles beyond Kharkiv, Ukraine&#8217;s largest city, into Russia in an act of self-defense.
See Also: <a href="https://www.benzinga.com/markets/asia/24/06/39401882/putin-forges-defense-pact-with-kim-jong-un-elevating-russia-north-korea-alliance-what-it-means-for-u">Putin Forges Defense Pact With Kim Jong Un, Elevating Russia-North Korea Alliance &#8211; What It Means For US, Regional Allies</a>
Meanwhile, the Kremlin is <a href="https://www.reuters.com/world/russia-tells-us-we-need-talk-ukraine-must-be-agenda-2024-06-21/">reportedly</a> eager to hold &#8220;comprehensive&#8221; security talks with the White House as long as they include the subject of Ukraine.
&#8220;It is impossible to rip out any individual segments from the general complex of accumulated problems, and we will not do this,&#8221; Kremlin spokesman&nbsp;Dmitry Peskov said when asked if Moscow was ready to talk to Washington about nuclear risks.
Peskov told reporters that the list of topics that Russia and the U.S. needed to discuss was growing, according to Reuters.
&#8220;Overall, this dialogue is very much required,&#8221; Peskov said. &#8220;It is needed because problems are piling up, and there are a lot of problems associated with the global security architecture.&#8221;
Washington contends that Russian President Vladimir Putin is fueling security concerns by visiting nuclear-armed <a href="https://www.benzinga.com/news/24/06/39358342/amid-russian-presidents-visit-to-kim-jong-uns-north-korea-china-resumes-high-level-security-talks-wi">North Korea this week</a>. Kim Jong Un signed a mutual defense accord with Putin who indicated he might give Russian weapons to North Korea due to the Western arming of Ukraine.
<h3 class="wp-block-heading">White House Rushes Air Defense Interceptor Missiles To Ukraine</h3>
The White House is also redirecting shipments planned for other allied nations to Ukraine to counter Russia&#8217;s increased onslaught.
<a href="https://apnews.com/article/ukraine-air-defense-interceptor-missile-shipments-biden-ecd0b8fc6ab8a416a792dc90d36d11bf"></a>National security spokesman John Kirby <a href="https://apnews.com/article/ukraine-air-defense-interceptor-missile-shipments-biden-ecd0b8fc6ab8a416a792dc90d36d11bf">told</a> the Associated Press that the U.S. had taken the "difficult but necessary decision to reprioritize near-term planned deliveries of foreign military sales to other countries. 
It is not clear which nations would be affected or how many.
"Right now, we know that Ukraine urgently needs these additional capabilities," Kirby told reporters. "Obviously more is needed, and it's needed now."
The U.S. has sent Ukraine interceptor missiles for its air defense systems as Russia intensified missile and drone attacks on cities and infrastructure centers in an effort to destroy Ukraine's energy system before winter.
The number of interceptors to be sent is not yet known. Kirby said it could involve "hundreds" of Patriot interceptor missiles.
Price Action: iShares U.S. Aerospace &amp; Defense ETF (CBOE:ITA) remained flat into Friday&#8217;s mid-day trading by sliding 0.05%, while Invesco Aersospce &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PPA#NYSE">PPA</a>) slipped 0.27%. SPDR S&amp;P Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XAR#NYSE">XAR</a>) picked up 0.72% in mid-day trading.
Now Read: <a href="https://www.benzinga.com/news/24/06/39433371/amid-north-korea-russia-defence-pact-seoul-to-reconsider-arms-supply-to-ukraine">Amid North Korea-Russia Defence Pact, Seoul To &#8216;Reconsider&#8217; Arms Supply To Ukraine</a>
Image: Shutterstock

Government

Politics

Ukraine Has Right To 'Fire Back' At Russia With US-Provided Munitions As Kremlin Seeks Talks With White House

China has reportedly imposed sanctions on several subsidiaries and senior executives of Lockheed Martin Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LMT#NYSE">LMT</a>) in response to <a target="_blank" href="https://www.benzinga.com/topic/taiwan" rel="noreferrer noopener">U.S. arms sales to Taiwan</a>.
The sanctions include freezing the assets of Lockheed Martin&#8217;s senior executives, including Chairman James Donald Taiclet, and banning their entry into China, reported Reuters.
China&#8217;s foreign ministry announced that the sanctions target Lockheed Martin Missile System Integration Lab, Lockheed Martin Advanced Technology Laboratories, and Lockheed Martin Ventures, per the report.
Beijing has repeatedly urged the U.S. to cease its arms sales to Taiwan, a self-governed island that China claims as its own.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/06/39429701/us-and-china-confront-taiwan-issue-in-first-informal-nuclear-talks-in-5-years-report" rel="noreferrer noopener">US And China Confront Taiwan Issue In First Informal Nuclear Talks In 5 Years: Report</a>
This latest round of sanctions is part of a broader effort by China to counter foreign actions against it, especially those related to Taiwan. China&#8217;s sanctions law, enacted in 2021, aims to provide legal grounds for retaliatory measures.
This is not the first time China has sanctioned U.S. defense contractors for their dealings with Taiwan. In <a target="_blank" href="https://www.benzinga.com/markets/equities/23/09/34609264/china-sanctions-lockheed-martin-and-northrop-grumman-concerning-arms-sales-to-taiwan-report" rel="noreferrer noopener">September last year</a>, China sanctioned Lockheed Martin and Northrop Grumman Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOC#NYSE">NOC</a>).
Prior to that, Lockheed Martin and RTX Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RTX#NYSE">RTX</a>) Raytheon faced sanctions in 2019, 2020, 2022, and 2023, with the 2022 sanctions being the first under China&#8217;s anti-foreign sanctions law.
Earlier in May, the Biden administration imposed new tariffs on Chinese imports, targeting sectors such as <a target="_blank" href="https://www.benzinga.com/economics/macro-economic-events/24/05/38813115/biden-targets-chinese-imports-with-huge-tariff-hikes-ahead-of-election" rel="noreferrer noopener">electric vehicles, batteries, and semiconductors</a>.&nbsp;
Investors can gain exposure to the stock via IShares U.S. Aerospace &amp; Defense ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>) and Schwab U.S. Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>).
Price Action: LMT shares are trading higher by 0.23% at $467.43 at last check Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Read Next: <a href="https://www.benzinga.com/markets/equities/24/05/38913623/boeing-trades-nearly-1-lower-as-china-imposes-symbolic-sanctions-on-airplane-maker-and-other-us-" target="_blank" rel="noreferrer noopener">Boeing Trades Nearly 1% Lower as China Imposes Symbolic Sanctions On Airplane Maker And Other US Defense Firms Over Taiwan Arms Sales</a>
Photo Courtesy: AlmostViralDesign On Shutterstock.com

SCHD

China Sanctions Lockheed Martin Subsidiaries, Executives Over Taiwan Arms Sales: Report

Boeing Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) is reportedly close to finalizing a deal to reacquire Spirit AeroSystems Holdings Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPR#NYSE">SPR</a>), its former subsidiary, following significant progress in separate negotiations between Spirit and Airbus SE (OTC:<a class="ticker" href="https://www.benzinga.com/stock/EADSY#OTC">EADSY</a>) to divide Spirit&#8217;s projects between the <a target="_blank" href="https://www.benzinga.com/quote/BA" rel="noreferrer noopener">two aerospace giants</a>.
Boeing initiated talks earlier this year to buy back Spirit AeroSystems, aiming to stabilize its supply chain after a mid-air blowout on a 737 MAX in January.
While the exact timing remains uncertain, a deal could be reached within days or weeks, reported Reuters.
The negotiations faced challenges due to Spirit&#8217;s <a target="_blank" href="https://www.benzinga.com/markets/equities/24/05/38610474/airbus-demands-compensation-to-acquire-spirit-operations-report" rel="noreferrer noopener">ongoing work with Airbus</a>. However, Boeing and Airbus have managed to partition Spirit&#8217;s programs, ensuring both companies&#8217; needs are met, per the report.
Airbus, previously seen as a major obstacle, is reportedly making &#8220;good progress&#8221; in its discussions with Spirit.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/06/39335955/boeing-and-airbus-under-faa-investigation-for-authenticity-of-titanium-parts-in-some-jets-report" rel="noreferrer noopener">Boeing And Airbus Under FAA Investigation For Authenticity Of Titanium Parts In Some Jets: Report</a>
Spirit AeroSystems, under financial strain, reported cash used in operations of $416 million vs. $46 million a year ago and the free cash outflow of $444 million, which was impacted by <a target="_blank" href="https://www.benzinga.com/news/earnings/24/05/38672413/spirit-aerosystems-encounters-headwinds-in-q1-as-boeing-737-issues-take-toll" rel="noreferrer noopener">Boeing 737 production disruptions and delivery delays.&nbsp;</a>
Boeing&#8217;s interest in reacquiring Spirit is partly driven by concerns over the supplier&#8217;s financial stability and the need for <a target="_blank" href="https://www.benzinga.com/news/24/04/38105865/boeing-airbus-near-deal-to-divide-operations-of-key-supplier-spirit-aerosystems-report" rel="noreferrer noopener">investment in digital production systems</a>.
Airbus CEO Guillaume Faury indicated that it is &#8220;not unlikely&#8221; that Airbus might take over Spirit&#8217;s operations for key projects like the A350 and A220. The report mentioned that Airbus and Boeing have been addressing issues related to inventory costs and contract valuations.
Boeing stock has lost more than 16% in the last 12 months.&nbsp;Investors can gain exposure to the stock via&nbsp;IShares U.S.&nbsp;Aerospace &amp; Defense ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>) and Invesco Aerospace&nbsp;&amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PPA#NYSE">PPA</a>).
Price Action: BA shares are trading lower by 0.31% at $175.75, while SPR is up 4.23% at $33.00 in premarket at last check Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Read Next: <a href="https://www.benzinga.com/markets/equities/24/06/39307378/boeing-insists-on-adherence-to-legal-agreement-post-737-max-crashes-report" target="_blank" rel="noreferrer noopener">Boeing Insists On Adherence To Legal Agreement Post-737 MAX Crashes: Report</a>
Photo via Wikimedia Commons

Movers

Boeing Nears Deal To Reacquire Spirit AeroSystems In Wake Of Airbus Negotiations: Report

Shares of aircraft giant Boeing Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) are <a href="https://www.benzinga.com/quote/BA">trading lower on Tuesday</a>.
Boeing is facing fresh allegations from a quality inspector, over the alleged mishandling of hundreds of defective parts potentially installed on new 737 Max aircraft, even as the aircraft maker continues to face <a href="https://www.benzinga.com/markets/equities/24/05/39115731/boeings-737-max-production-freeze-remains-as-faa-demands-safety-overhaul">scrutiny over its manufacturing processes</a>.
Sam Mohawk, a Boeing inspector, lodged a complaint with the Occupational Safety and Health Administration on June 11, detailing the loss and mishandling of up to 400 faulty aircraft parts.
The allegations were brought to light by a U.S. Senate subcommittee, which released the details to members, <a href="https://www.bloomberg.com/news/articles/2024-06-18/boeing-may-have-installed-bad-737-parts-whistleblower-alleges?sref=TBDibEcD">Bloomberg</a> reports.
Boeing has acknowledged the receipt of the complaint and is currently reviewing the claims. The allegations have prompted intensified scrutiny from various federal agencies, including the Justice Department, which is considering charges against Boeing for past safety lapses. 
Also Read: <a href="https://www.benzinga.com/news/24/06/39335955/boeing-and-airbus-under-faa-investigation-for-authenticity-of-titanium-parts-in-some-jets-report">Boeing And Airbus Under FAA Investigation For Authenticity Of Titanium Parts In Some Jets: Report</a>
These new allegations add another layer of complexity as Boeing works to restore trust in its 737 Max series, previously <a href="https://www.benzinga.com/markets/equities/24/06/39307378/boeing-insists-on-adherence-to-legal-agreement-post-737-max-crashes-report">grounded after two fatal crashes</a>.
The Senate&#8217;s Permanent Subcommittee on Investigations, which released Mohawk&#8217;s complaint, is actively probing Boeing&#8217;s practices. 
This inquiry is part of broader efforts to ensure that manufacturing speeds and cost-cutting measures do not compromise aircraft safety.
The Federal Aviation Administration (FAA) has reported a <a href="https://www.benzinga.com/markets/equities/24/05/39009464/boeings-employee-speak-up-on-safety-quality-soar-500-after-737-max-incident-whats-the-benefit">significant increase in whistleblower activitie</a>s since early this year, underscoring a growing culture of safety awareness among Boeing employees. 
The CEO, David Calhoun, is set to appear before senators on Tuesday, where he will be questioned about the company's safety <a href="https://www.benzinga.com/markets/equities/24/06/39371119/boeings-ceo-david-calhoun-to-face-us-senators-questions-on-plane-safety-amid-ongoing-investigati">measures amid ongoing investigations</a>.
Boeing stock has lost 16% in the last 12 months.&nbsp;Investors can gain exposure to the stock via&nbsp;IShares U.S.&nbsp;Aerospace &amp; Defense ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>) and Invesco Aerospace&nbsp;&amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PPA#NYSE">PPA</a>).
Price Action: BA shares are trading lower by 2.25% at $174.45 at last check Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo: Shutterstock

Travel

What's Going On With Boeing's Shares On Tuesday

Boeing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) and Airbus SE (OTC:<a class="ticker" href="https://www.benzinga.com/stock/EADSY#OTC">EADSY</a>) shares are <a target="_blank" href="https://www.benzinga.com/quote/BA" rel="noreferrer noopener">trading lower on Friday</a>.
The U.S. Federal Aviation Administration (FAA) is currently investigating the possible use of false documentation to verify titanium components in some of Boeing&#8217;s and Airbus&#8217;s aircraft, discoveries that could affect the integrity of critical aerospace materials.
The inquiry extends to both major aircraft manufacturers and focuses on the authenticity of titanium, a vital metal used throughout the aerospace industry, <a target="_blank" href="https://www.reuters.com/business/aerospace-defense/faa-investigating-counterfeit-titanium-used-some-boeing-airbus-jets-nyt-reports-2024-06-14/" rel="noreferrer noopener">Reuters</a> reports.
The issue was discovered by a vendor, who discovered corrosion holes in titanium parts, prompting the FAA to investigate immediately.
Boeing has voluntarily disclosed the procurement of potentially compromised material sourced from a distributor suspected of falsifying or providing incorrect records.
In response to these findings, Boeing has issued a bulletin to its suppliers advising them to remain vigilant against falsified records.
Spirit AeroSystems Holdings Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPR#NYSE">SPR</a>), a key supplier for both Boeing and Airbus, acknowledged that the problematic titanium had been introduced into the supply chain through counterfeit documentation, leading to the quarantine and removal of all suspect parts from production lines.
Also Read: <a target="_blank" href="https://www.benzinga.com/markets/equities/24/05/39115731/boeings-737-max-production-freeze-remains-as-faa-demands-safety-overhaul" rel="noreferrer noopener">Boeing&#8217;s 737 MAX Production Freeze Remains As FAA Demands Safety Overhaul</a>
Spirit AeroSystems has conducted over 1,000 tests to verify the mechanical and metallurgical properties of the affected materials, ensuring they meet safety standards for continued airworthiness.
The investigation is set against the backdrop of an increasing demand for new aircraft driven by a resurgence in post-pandemic travel.
However, ongoing <a target="_blank" href="https://www.benzinga.com/markets/equities/24/05/39058924/boeings-production-slowdown-sends-shockwaves-through-aerospace-supply-chain" rel="noreferrer noopener">supply chain challenges</a> and component shortages are complicating efforts by manufacturers to ramp up production.
Airbus is struggling with parts and labor shortages, which are impacting its jet production timeline and could affect its goal of increasing output to <a target="_blank" href="https://www.benzinga.com/news/24/05/39112770/airbus-battles-supply-chain-headwinds-threatening-future-jet-deliveries-report" rel="noreferrer noopener">75 planes monthly by 2026</a>.
The investigation comes even as the head of the Federal Aviation Administration admitted on Thursday to insufficient oversight of Boeing following a <a target="_blank" href="https://www.benzinga.com/markets/equities/24/06/39317727/whats-going-on-with-boeing-shares-today" rel="noreferrer noopener">mid-air emergency</a> involving&nbsp;Alaska Air Group, Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALK#NYSE">ALK</a>).
Boeing stock has lost 16% in the last 12 months.&nbsp;Investors can gain exposure to the stock via&nbsp;IShares U.S.&nbsp;Aerospace &amp; Defense ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>) and Invesco Aerospace&nbsp;&amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PPA#NYSE">PPA</a>).
Price Action: BA shares are trading lower by 1.66% at $177.66 at the last check on Friday. EADSY shares are trading lower by 2.32% at $39.24 at last check Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Read Next: <a href="https://www.benzinga.com/markets/equities/24/06/39307378/boeing-insists-on-adherence-to-legal-agreement-post-737-max-crashes-report" target="_blank" rel="noreferrer noopener">Boeing Insists On Adherence To Legal Agreement Post-737 MAX Crashes: Report</a>
Photo Courtesy: Robin Guess Via Shutterstock

Boeing And Airbus Under FAA Investigation For Authenticity Of Titanium Parts In Some Jets: Report

Boeing Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) shares are <a target="_blank" href="https://www.benzinga.com/markets/equities/24/06/39307378/boeing-insists-on-adherence-to-legal-agreement-post-737-max-crashes-report" rel="noreferrer noopener">trading lower on Thursday.</a>
The head of the Federal Aviation Administration reportedly admitted Thursday to insufficient oversight of Boeing following a mid-air emergency involving Alaska Air Group, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALK#NYSE">ALK</a>) in January.
Check This Out:<a target="_blank" href="https://www.benzinga.com/markets/equities/24/01/36523143/im-going-to-die-passengers-experience-15-minute-nightmare-during-alaska-airs-harrowing-emergency" rel="noreferrer noopener"> &#8216;I&#8217;m Going To Die!&#8217;: Passengers Experience 15-Minute Nightmare During Alaska Air&#8217;s Harrowing Emergency, 65 Boeing 737 Max 9 Jets Grounded</a>
At a Senate Commerce Committee hearing, FAA Administrator Mike Whitaker&#8217;s remarks signify the agency&#8217;s first acknowledgment of insufficient oversight in the January 5 incident, involving a blown-out door panel during a flight, Reuters reported
&#8220;The FAA should have had much better visibility into what was happening at Boeing before Jan. 5,&#8221; Whitaker said.
The FAA&#8217;s approach before the mid-air incident &#8220;was too hands off, too focused on paperwork audits and not focused enough on inspections,&#8221; Whitaker added, which Reuters noted.
According to <a href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>, BA stock has lost over 18% in the past year. Investors can gain exposure to the stock via IShares U.S. Aerospace &amp; Defense ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>).
Meanwhile, Boeing is reportedly probing a fresh quality issue concerning its 787 Dreamliner, with hundreds of fasteners found incorrectly installed on some undelivered jet fuselages, Reuters reported in a separate story.
The newest issue for the U.S. planemaker involves incorrect torquing of over 900 fasteners per plane, split equally on both sides of the jet&#8217;s mid-body, adding to a series of manufacturing snags, the report read, citing people familiar with the matter.
Flight safety isn&#8217;t immediately compromised, but Boeing aims to determine the cause and extent of the issue before deciding on any necessary rework, the sources told Reuters, asking not to be identified.
&#8220;Our 787 team is checking fasteners in the side-of-body area of some undelivered 787 Dreamliner airplanes to ensure they meet our engineering specifications. The in-service fleet can continue to safely operate,&#8221; a spokesperson confirmed to Reuters.
&#8220;We are taking the time necessary to ensure all airplanes meet our delivery standards prior to delivery. We are working closely with our customers and the FAA and keeping them updated,&#8221; Reuters quoted the spokesperson.
Price Action: BA shares are trading lower by 1.08% to $180.70 at last check Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Read Next:&nbsp;<a href="https://www.benzinga.com/markets/equities/24/06/39266845/xpengs-mona-sub-brand-following-nios-onvo-launches-debut-model-m03-powered-by-byd-batteries" target="_blank" rel="noreferrer noopener">XPeng&#8217;s Mona Sub-Brand Following NIO&#8217;s Onvo? Launches Debut Model M03 Powered By BYD Batteries</a>
Photo via Shutterstock

Gabelli ETFs Trust Gabelli Financial Services Opportunities ETF

GABF

What's Going On With Boeing Shares Today?

Boeing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>), amid scrutiny, reportedly stated to the U.S. Justice Department that it complied with a 2021 agreement designed to avoid criminal prosecution after the 737 MAX tragedies that resulted in 346 deaths.
This assertion counters a recent governmental finding that accused the aerospace giant of failing to adhere to the terms.
According to the latest evaluations by the U.S. Justice Department in May, Boeing did not meet the criteria of designing and <a target="_blank" href="https://www.benzinga.com/news/24/05/38845748/justice-department-accuses-boeing-of-2021-settlement-breach" rel="noreferrer noopener">implementing a sufficient compliance and ethics program.</a>
The program was crucial to detecting and preventing violations of U.S. fraud laws within its operations, according to a report from Reuters.
A spokesperson from Boeing emphasized the company&#8217;s commitment to transparent engagement throughout the agreement&#8217;s duration, per the report.
Also Read: <a target="_blank" href="https://www.benzinga.com/markets/equities/24/05/39115731/boeings-737-max-production-freeze-remains-as-faa-demands-safety-overhaul" rel="noreferrer noopener">Boeing&#8217;s 737 MAX Production Freeze Remains As FAA Demands Safety Overhaul</a>
Recent developments have indicated that while Boeing executives might avoid criminal charges due to statute limitations, the Justice Department maintains<a target="_blank" href="https://www.benzinga.com/news/24/06/39142764/why-is-boeing-stock-soaring-on-monday" rel="noreferrer noopener"> until July 7 to outline their prosecutorial plans.</a>
These could range from launching a criminal case to extending the deferred prosecution agreement, which would delay any immediate legal action against the company.
Earlier statements from Boeing have expressed confidence in their fulfillment of the deferred prosecution agreement&#8217;s terms and anticipate a constructive response to the Justice Department&#8217;s inquiries.
In January, <a target="_blank" href="https://www.benzinga.com/markets/equities/24/01/36526743/over-170-boeing-737-max-9s-grounded-as-alaska-air-passengers-recall-terrifying-incident" rel="noreferrer noopener">an incident involving Alaska Airlines 737 MAX</a> prompted a new investigation, raising&nbsp;fresh&nbsp;concerns about Boeing&#8217;s safety culture.
Boeing stock has lost more than 17% in the last 12 months.&nbsp;Investors can gain exposure to the stock via&nbsp;IShares U.S.&nbsp;Aerospace &amp; Defense ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>) and Invesco Aerospace&nbsp;&amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PPA#NYSE">PPA</a>).
Price Action: BA shares closed lower by 1.53% at $182.67 on Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Read Next: <a href="https://www.benzinga.com/markets/equities/24/06/39266384/boeing-close-to-securing-major-737-max-order-from-israels-el-al-report" target="_blank" rel="noreferrer noopener">Boeing Close To Securing Major 737 Max Order From Israel&#8217;s El Al: Report</a>
Photo via Shutterstock

Boeing Insists On Adherence To Legal Agreement Post-737 MAX Crashes: Report

Boeing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) is set to inaugurate a new engineering <a target="_blank" href="https://boeing.mediaroom.com/news-releases-statements?item=131436" rel="noreferrer noopener">hub </a>at the Cici &amp; Hyatt Brown Center for Aerospace Technology located at Embry-Riddle Aeronautical University in Daytona Beach, Florida.
The establishment aims to enhance engineering efforts primarily focused on military aviation programs and technology initiatives.
Steve Nordlund, Vice President and General Manager at Boeing Air Dominance, said, &#8220;Expanding both our footprint in Florida and partnership with Embry-Riddle will accelerate innovation across our combat aircraft programs.&#8221;
&#8220;We expect this location to be attractive to not only Embry-Riddle graduates, but also to established aerospace engineers from across Florida and around the nation.&#8221;&nbsp;
Boeing&#8217;s ambitious agenda includes the creation of around 200 engineering positions in 2024, with plans to potentially double this number in the forthcoming years.
Also Read: <a target="_blank" href="https://www.benzinga.com/markets/equities/24/06/39266384/boeing-close-to-securing-major-737-max-order-from-israels-el-al-report" rel="noreferrer noopener">Boeing Close To Securing Major 737 Max Order From Israel&#8217;s El Al: Report</a>
The roles will predominantly support the company&#8217;s defense and government services sectors, focusing on design, research, and prototype development.
The upcoming facility spans 65,000 square feet, including a large 40,000-square-foot hangar.
Initiated in 2022, the construction is on track for completion this fall, with the site expected to be fully operational shortly thereafter.
In May, Boeing delivered 24 commercial aircraft, approximately half of the 50 jets supplied to customers in the same month last year, <a target="_blank" href="https://www.benzinga.com/markets/equities/24/06/39277102/why-boeing-company-shares-are-falling-today" rel="noreferrer noopener">maintaining a slower assembly line pace</a>.
The plane maker delivered 19 MAX jets in May, up from April but down 45% compared to May 2023 when it handed over 35 jets.
Boeing stock has lost more than 16% in the last 12 months.&nbsp;Investors can gain exposure to the stock via&nbsp;IShares U.S.&nbsp;Aerospace &amp; Defense ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>) and Invesco Aerospace&nbsp;&amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PPA#NYSE">PPA</a>).
Price Action: BA shares closed lower by 2.43% at $185.50 on Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Read Next: <a href="https://www.benzinga.com/markets/equities/24/05/39115731/boeings-737-max-production-freeze-remains-as-faa-demands-safety-overhaul" target="_blank" rel="noreferrer noopener">Boeing&#8217;s 737 MAX Production Freeze Remains As FAA Demands Safety Overhaul</a>
Photo via Shutterstock

Boeing Sets Up New Aerospace Tech Hub At Florida

Boeing Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) shares are <a target="_blank" href="https://www.benzinga.com/movers" rel="noreferrer noopener">trading lower on Tuesday</a>.
On a year-to-date basis, the company <a href="https://www.boeing.com/commercial#orders-deliveries" target="_blank" rel="noreferrer noopener">delivered </a>131 airplanes with adjusted net orders of 130 this year. The company reported 142 year-to-date gross orders.
In May, Boeing delivered 24 commercial aircraft, approximately half of the 50 jets supplied to customers in the same month last year, maintaining a slower assembly line pace to finalize pending tasks, Reuters reported.
Boeing has reduced production of MAX single-aisle jets to enhance manufacturing quality, following increased regulatory scrutiny after a mid-air door plug blowout on a 737 MAX 9 jet on Jan. 5.
The planemaker delivered 19 MAX jets in May, up from April but down 45% compared to May 2023 when it handed over 35 jets, the report added.
Reuters previously reported that Boeing&#8217;s monthly output dropped to single digits in late March, far below the FAA-imposed cap of 38 jets per month.
Boeing&#8217;s backlog decreased from 5,646 to 5,625 as of May 31.
In May, Boeing secured four gross new orders, all for Eva Air&#8217;s 787-10 Dreamliners, bringing the year&#8217;s total to 142. Adjusted for cancellations, Boeing&#8217;s net orders so far in 2024 stand at 103.
According to&nbsp;<a target="_blank" href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw" rel="noreferrer noopener">Benzinga Pro</a>, BA stock has lost over 16% in the past year. Investors can gain exposure to the stock via&nbsp;IShares U.S. Aerospace &amp; Defense ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>) and&nbsp;First Trust Exchange-Traded Fund First Trust Indxx Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MISL#NYSE">MISL</a>).
Price Action: BA shares are trading lower by 2.67% to $185.05 at last check Tuesday.
Image by Miguel Lagoa via Shutterstock

MISL

Why Boeing Company Shares Are Falling Today

Boeing Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) is reportedly nearing what could be its second largest sale of the year for the 737 Max jets, engaging in exclusive talks with El Al Israel Airlines following a turbulent start to the year due to a significant mishap involving the aircraft model.
The deal, estimated to be worth between $2 billion and $2.5 billion, involves around 30 of Boeing&#8217;s 737 Max aircraft, including additional engines and spare parts, according to a report from <a href="https://www.bloomberg.com/news/articles/2024-06-10/boeing-set-to-land-2-billion-737-max-order-from-israel-s-el-al?srnd=industries-v2&amp;sref=TBDibEcD" target="_blank" rel="noreferrer noopener">Bloomberg</a>.
Related: <a href="https://www.benzinga.com//node/39009464" target="_blank" rel="noreferrer noopener">Boeing&#8217;s Employee Speak Up On Safety, Quality Soar 500% After 737 MAX Incident &#8211; What&#8217;s The Benefit?</a>
The new aircraft will phase out older models, specifically the 737-800 and 737-900 jets that currently make up part of El Al&#8217;s fleet.
The transition is part of the carrier&#8217;s ongoing efforts to modernize its fleet, which exclusively comprises Boeing aircraft, both narrow-body and wide-body.
El Al had previously considered a competitive bid from Airbus SE (OTC:<a class="ticker" href="https://www.benzinga.com/stock/EADSY#OTC">EADSY</a>) for the fleet upgrade, highlighting the competitive dynamics in the aircraft manufacturing industry.
Also Read: <a target="_blank" href="https://www.benzinga.com/markets/equities/24/05/39115731/boeings-737-max-production-freeze-remains-as-faa-demands-safety-overhaul" rel="noreferrer noopener">Boeing&#8217;s 737 MAX Production Freeze Remains As FAA Demands Safety Overhaul</a>
This potential agreement marks a significant rebound for Boeing, which faced intense scrutiny and criticism from regulators, legislators, and the <a target="_blank" href="https://www.benzinga.com/government/24/02/36965801/boeing-737-max-door-plug-that-flew-off-alaska-air-flight-missing-4-key-bolts-preliminary-ntsb-report" rel="noreferrer noopener">airline industry following a January incident</a>.
During that event, a fuselage panel detached from a 737 Max during flight, sparking safety concerns and investigations.
The deal with El AI is <a target="_blank" href="https://www.benzinga.com/markets/equities/24/03/37463518/american-airlines-shares-are-declining-today-whats-going-on" rel="noreferrer noopener">second only to an earlier order in March</a> by American Airlines Group Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAL#NASDAQ">AAL</a>), which included 85 of the same model, showcasing a recovering trust in the 737 Max&#8217;s safety enhancements.
Boeing stock has lost more than 14% in the last 12 months.&nbsp;Investors can gain exposure to the stock via&nbsp;IShares U.S.&nbsp;Aerospace &amp; Defense ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>) and Invesco Aerospace&nbsp;&amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PPA#NYSE">PPA</a>).
Price Action: BA shares are trading lower by 0.44% at $189.28 in premarket at the last check Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Read Next:<a href="https://www.benzinga.com/news/24/06/39137671/new-boeing-ceo-must-learn-from-crisis-iata-head" target="_blank" rel="noreferrer noopener"> New Boeing CEO Must Learn From Crisis: IATA Head</a>
Photo Courtesy: Tada Images On Shutterstock.com

Boeing Close To Securing Major 737 Max Order From Israel's El Al: Report

The U.S. flew a B-1B bomber over the Korean Peninsula Wednesday morning. Amid greater <a href="https://www.benzinga.com/news/24/05/39107666/after-sending-balloons-filled-with-manure-kim-jong-uns-north-korea-fires-18-missiles-in-warning-to-s">escalation of tension </a>in the region between North Korea and South Korea, how does it affect defense companies and <a href="https://www.benzinga.com/etfs">exchange-traded funds (ETFs)</a>?
What Happened: The South Korean military announced the bombing drill, <a href="https://apnews.com/article/north-korea-us-bomber-jdam-aa288f398e1387abe3d7eea82e2b2c2d">according</a> to the Associated Press. 
During the training drill, the B-1B bomber dropped Joint Direct Attack Munitions (JDAMs) while being escorted by South Korean jets. 
Why it Matters: Both the B-1B bomber and JDAMs are <a href="https://www.boeing.com/defense/b-1b-lancer">manufactured</a> by Boeing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>). 
Other U.S. weapons manufacturers actively supply the South Korean military. Rtx Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RTX#NYSE">RTX</a>), formerly Raytheon, supplies aerospace <a href="https://raytheon.mediaroom.com/2024-02-13-RTXs-Pratt-Whitney-receives-a-355-million-F100-engine-sustainment-contract-for-South-Koreas-F-15s,-F-16s">engines</a> and <a href="https://www.rtx.com/news/news-center/2023/05/15/raytheon-technologies-upgrading-korea-aerospace-industries-fa-50-aircraft-with-p">radar</a> technology to South Korea. Northrop Grumman Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOC#NYSE">NOC</a>) supplies South Korea with mine detection radar <a href="https://news.northropgrumman.com/news/releases/northrop-grumman-awarded-mine-detection-contract-for-the-republic-of-korea">technology</a>.
The U.S. has <a href="https://www.benzinga.com/markets/equities/24/02/37111669/95b-ukraine-aid-bill-republicans-challenge-historical-views-on-foreign-policy-us-role-as-worlds-">recently spent billions</a> on military operations in Ukraine, Israel and Taiwan. Escalation in the Korean Peninsula could also draw the attention of U.S. legislators.
There are many defense-themed ETFs that are heavily weighted towards the defense contractors mentioned above, including the iShares US Aerospace &amp; Defense ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>), the iShares U.S. Aerospace &amp; Defense Index ETF (TSE: XAD) and the Invesco Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PPA#NYSE">PPA</a>).
Price Action:
<ul>
<li>Boeing traded at $189.65, up 0.55%.</li>
<li>RTX traded at $108.42, up 0.48%.</li>
<li>Northrop Grumman traded at $442.74, down 1.26%.</li>
</ul>
Also Read: <a href="https://www.benzinga.com/news/24/06/39138174/kim-jong-uns-minister-says-north-korea-wont-be-sending-manure-filled-balloons-anymore-but-warns-resu">Kim Jong Un&#8217;s Minister Says North Korea Won&#8217;t Be Sending Manure-Filled Balloons Anymore But Warns Resumption If South Korea Allows Anti-Pyongyang Leaflets</a>
Image: B-1B Lancers from Military_Material (Pixabay)

US Flies B-1B Bomber Over Korean Peninsula: What It Means For Defense Companies, ETFs

As The Rally In Big Tech Continues, Is The Broader Market Ready To Catch Up?

iShares U.S. Aerospace & Defense ETF declares quarterly distribution of $0.2989

<a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a>
Fortune discussed the best aviation stocks in early June, suggesting that even though they&rsquo;re a bargain, they might not be worth the turbulence.&nbsp;



I don&rsquo;t think there&rsquo;s any question Boeing (NYSE:<a href="https://investorplace.com/stock-quotes/ba-stock-quote/">BA</a>) stock has taken it on the chin in 2024. It&rsquo;s down more than 27% with a half-year left to plummet some more. Is it a bargain?




&ldquo;Nicolas Owens, an industrials equities analyst at Morningstar, notes that the spectacular nature of aviation mishaps can produce overreaction on the part of investors,&rdquo; Fortune contributor Jeff John Roberts <a href="https://fortune.com/2024/06/03/aviation-airlines-stocks-investing-boeing-ba-dal-ual-luv-rtx-lmt-gd/">wrote</a> on June 3.&nbsp;




The iShares U.S. Aerospace &amp; Defense ETF (BATS:<a href="https://investorplace.com/stock-quotes/ita-stock-quote/">ITA</a>), which has Boeing as its second-highest weighted stock holding at <a href="https://www.ishares.com/us/products/239502/ishares-us-aerospace-defense-etf">14.14%</a>, is actually up more than 7% in 2024, which suggests you might be better off buying ITA to capture the undervaluation in aviation stocks.&nbsp;



However, this is an article about stocks, so stocks it will be.&nbsp;



The ITA&rsquo;s average price-to-book and price-to-earnings ratios are 3.85x and 31.61x, respectively. I will look for names held by ITA that have a product of less than 122.



<h2>Textron (TXT)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/03/textron_txt_bell_v22_1600-300x169.png" alt="Bell Boeing V-22 Osprey shown during a flight demo."><div>Source: Angel DiBilio / Shutterstock.com</div></div>According to Morningstar.com, Textron (NYSE:<a href="https://investorplace.com/stock-quotes/txt-stock-quote/">TXT</a>) has a P/E and P/S of <a href="https://www.morningstar.com/stocks/xnys/txt/quote">14.86x</a> and 1.23x, respectively. It is the eighth-largest holding of ITA with a 4.03% weighting. Its shares are up over 6% year-to-date.&nbsp;



Textron isn&rsquo;t a direct competitor to Boeing like GE Aerospace (NYSE:<a href="https://investorplace.com/stock-quotes/ge-stock-quote/">GE</a>) but it does have several aviation-based businesses including <a href="https://www.textron.com/About/Our-Businesses">Bell Helicopters</a> and business jets under the Citation, Cessna, and Beechcraft brands.



As a golfer, I&rsquo;ve always followed it because of its E-Z-Go, Cushman, and Arctic Cat brands. They&rsquo;re more consumer focused businesses with solid commercial revenue as well. However, it is the aviation business that drives the company&rsquo;s share price, accounting for more than <a href="https://investor.textron.com/investors/Financial-Highlights/default.aspx">62%</a> of its 2023 revenue.&nbsp;&nbsp;



In Q1 2024, its segment profit was <a href="https://investor.textron.com/news/news-releases/press-release-details/2024/Textron-Reports-First-Quarter-2024-Results/default.aspx">$290 million</a>, 12% higher than Q1 2023. Its aviation-related segment profit contributed all of the growth, offset by lower Industrial segment profits and losses from Textron eAviation, the company&rsquo;s electrification unit.&nbsp;



Out of the <a href="https://www.marketwatch.com/investing/stock/txt/analystestimates">18 analysts</a> that cover its stock, 11 rate it a Buy, with a $100 target, 17% higher than its current share price.&nbsp;&nbsp;



<h2>Lockheed Martin (LMT)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2023/02/lmt1600-300x169.png" alt="Close top view of a Lockheed Martin (LMT) F-35C Lightning II with afterburner on"><div>Source: ranchorunner / Shutterstock.com</div></div>Lockheed Martin (NYSE:<a href="https://investorplace.com/stock-quotes/lmt-stock-quote/">LMT</a>) has a P/E and P/S of <a href="https://www.morningstar.com/stocks/xnys/lmt/quote">16.69x</a> and 1.65x, respectively. It is the third-largest holding of ITA with a 12.83% weighting. Its shares are up about 1% year-to-date.&nbsp;



Lockheed Martin&rsquo;s products keep America&rsquo;s military prepared to defend the country. Products from the Maryland-based defense contractor include the <a href="https://www.barrons.com/articles/buy-lockheed-martin-stock-price-pick-c9e7ad5e">F-35</a> joint strike jet fighters, Blackhawk combat helicopters, Hellfire missiles and more.&nbsp;



Barron&rsquo;s reported comments from Seaport Research Partners analyst Richard Safran from earlier in June that its supply chain issues are going away, providing a higher multiple for the company&rsquo;s shares.&nbsp;



Further, while its earnings per share have tripled in the past 10 years compared to a two-fold increase for the S&amp;P 500, its shares have traded at a discount to the index&rsquo;s 12-month forward earnings.&nbsp;



The biggest risk for Lockheed is that it generates 75% of its revenue from the U.S. government. Should Congress take a hatchet to defense budgets post-election, that would hurt future revenue.&nbsp;



As of March 31, it had a backlog of <a href="https://news.lockheedmartin.com/2024-04-23-Lockheed-Martin-Reports-First-Quarter-2024-Financial-Results">$159 billion</a>, or about 2.3x its 2023 revenue, which means it&rsquo;s got plenty to keep it busy well beyond November.&nbsp;&nbsp;



<h2>RTX (RTX)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2020/07/rtx-stock-300x169.jpg" alt="Raytheon (RTX) defense company logo hanging from glass building"><div>Source: JHVEPhoto / Shutterstock.com</div></div>RTX (NYSE:<a href="https://investorplace.com/stock-quotes/rtx-stock-quote/">RTX</a>) has a P/E and P/S of <a href="https://www.morningstar.com/stocks/xnys/rtx/quote">20.68x</a> and 2.11x, respectively. It is the largest holding of ITA with an 18.85% weighting. Its shares are up more than 25% year-to-date, nearly double the index.&nbsp;



InvestorPlace contributor Rich DuPrey recently included RTX in a group of three stocks to buy over $100. RTX just makes the cut at $106.64 as I write this. DuPrey&rsquo;s rationale for buying shares of the company best-known for its Patriot missile system and Stinger and Javelin missles, is that it&rsquo;s operating in the <a href="https://investorplace.com/2024/06/3-stocks-over-100-you-should-buy-now-june-2024/">best business environment</a> in its history with record backlog of $202 billion.&nbsp;&nbsp;&nbsp;



You know what they say, &ldquo;You have to make hay while the sun shines.&rdquo; RTX is doing that.&nbsp;



The company has three operating segments: Collins Aerospace, Raytheon, and Pratt &amp; Whitney. The latter&rsquo;s Q1 2024 sales were <a href="https://investors.rtx.com/static-files/2f11f99a-8aad-4276-9c7d-90ace69496bc">23% higher</a> year-0ver-year to $6.46 billion, generating $430 million in operating profits. Of the three segments that generated nearly the same revenue in the first quarter, Pratt &amp; Whitney has the lowest operating margin of 6.7%.&nbsp;



Like Lockheed Martin, analysts are on the fence about RTX stock. Of the <a href="https://www.marketwatch.com/investing/stock/rtx/analystestimates">25</a> that cover it, only nine rate it a Buy, with a $109.50 target price, 3% higher than its current share price.&nbsp;



Of the three, Textron is my favorite.&nbsp;&nbsp;



On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com<a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/"> Publishing Guidelines</a>.
<div>Will Ashworth has written about investments full-time since 2008. Publications where he&rsquo;s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.</div><h3>More From InvestorPlace</h3>
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The post <a href="https://investorplace.com/2024/06/the-3-best-aviation-stocks-to-buy-sorry-boeing/">The 3 Best Aviation Stocks to Buy (Sorry, Boeing.)</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.

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<a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a>
Geopolitical turmoil continues unabated. There is no end in sight for the conflict raging in Gaza, and similar can be said about the Russia-Ukraine war. Unfortunate though true, a world embroiled in various clashes does create an opportunity to invest in <a href="https://investorplace.com/industries/industrial/defense/">defense stocks</a>. The companies behind these &ldquo;Defense&rdquo; stocks sell weapons, defense systems, armored vehicles and drones to the U.S. government as well as its allies.



The iShares U.S. Aerospace &amp; Defense ETF (NYSEBATS:<a href="https://investorplace.com/stock-quotes/ita-stock-quote/">ITA</a>), for example, is a $6.1 billion exchange-traded fund that has investments in 39 different. public aerospace firms and defense contracts. The ETF has seen a resurgence since early October last year and is up more than 22% since then. 



Of course, not all defense firms are a sure bet these days. Below are 3 clear defense stocks that investors should sell before their share prices crash and burn.



<h2>Boeing (BA)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2023/02/shutterstock_1212299986-300x169.jpg" alt="BA stock: a blue and white Boeing 787 flying in the sky above the clouds"><div>Source: vaalaa / Shutterstock</div></div>The plane-maker and defense contractor Boeing (NYSE:<a href="https://investorplace.com/stock-quotes/ba-stock-quote/">BA</a>) cannot seem to stay out of major headlines. In January, an Alaska Airlines Boeing 737-MAX-9 plane suffered an emergency door blowout that catapulted a series of investigations into the plane-maker&rsquo;s manufacturing quality and scale capabilities. Shortly after the incident, the U.S. Federal Aviation Administration (FAA) started a high-profile investigation. And on the FAA&rsquo;s <a href="https://www.faa.gov/newsroom/updates-boeing-737-9-max-aircraft">website</a>, they have written, &ldquo;[the agency] has halted production expansion of the Boeing 737 MAX, is exploring the use of a third party to conduct independent reviews of quality systems.&rdquo; Similarly, in early May, the FAA has also began a <a href="https://www.reuters.com/business/aerospace-defense/faa-opens-new-investigation-into-boeing-wsj-reports-2024-05-06/#:~:text=The%20FAA%20said%20it%20is,may%20have%20falsified%20aircraft%20records.%22">probe</a> into the production quality of Boeing&rsquo;s long-haul 787 Dreamliner jets. A model type that Boeing employees have been accused of falsifying safety documents.



Most recently, the U.S Justice Department has <a href="https://www.cbsnews.com/news/boeing-plea-deal-deferred-prosecution-agreement/">offered a plea deal</a> to the company for its role in the 2018 and 2019 737-MAX crashes, after the plane-maker had originally received a deferred prosecution agreement that had temporarily shielded it from criminal charges.



Boeing&rsquo;s share price has been amongst the worst performers in the industrial sector. The plane-maker&rsquo;s share price has plummeted more than 30% since the start of the year. Ongoing investigations, a potential criminal prosecution and further finding of criminal negligence could send shares plummeting even more.



<h2>Archer Aviation (ACHR)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2023/11/achr1600-3-300x169.png" alt="Person holding mobile phone with web page of US eVTOL aircraft company Archer Aviation Inc. (ACHR) on screen with logo. Focus on center of phone display. Unmodified photo. Archer Aviation Stock Analysis"><div>Source: T. Schneider / Shutterstock.com</div></div>Archer Aviation (NYSE:<a href="https://investorplace.com/stock-quotes/achr-stock-quote/">ACHR</a>) is an electric vertical take-off and landing (eVTOL) manufacturer. eVTOL vehicles will be an interesting space within the urban transportation sector that investors should watch out for with enthusiasm. The idea is to provide travelers with an alternative, futuristic way in which to travel about a large urban dwelling. Most recently, the FAA has <a href="https://www.cnbc.com/2024/06/05/archer-aviation-faa-signoff.html">awarded</a> Archer Aviation&rsquo;s &ldquo;Midnight&rdquo; eVTOL with a significant certificate that will allow it to fly commercially. This was after two long years of filing various documents. Archer Aviation&rsquo;s Midnight is a four-passenger aircraft with a range of 100 miles. 



However, Archer Aviation&rsquo;s stock price has been disappointing. Shares have fallen 42.7% on a year-to-date basis. While Archer does have a <a href="https://www.cnbc.com/2021/02/10/united-airlines-orders-electric-vertical-aircraft-invests-in-urban-air-mobility-spac.html">partnership</a> with United Airlines (NASDAQ:<a href="https://investorplace.com/stock-quotes/ual-stock-quote/">UAL</a>), which has ordered several of Archer&rsquo;s eVTOL aircrafts, there is a lot of competition in the space, from Joby Aviation (NYSE:<a href="https://investorplace.com/stock-quotes/joby-stock-quote/">JOBY</a>), for example, and a lack of a pathway to profitability could keep shares trending downward. 



<h2>Mercury Systems (MRCY)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/07/defense1600a-300x169.jpg" alt="defense stocks with dividend growth"><div>Source: Shutterstock</div></div>Mercury Systems (NASDAQ:<a href="https://investorplace.com/stock-quotes/mrcy-stock-quote/">MRCY</a>) is the final defense company to make this sell-list. In short, the firm manufactures and sells components, products, modules and subsystems to various companies within the defense and aerospace industry. Moreover, Mercury offers a variety of semiconductor components, including transceivers, switches and amplifiers as well as integrated circuit chips that compose different military technologies.



Unfortunately, Mercury has also suffered from a plummeting stock price and declining earnings. In particular, MRCY shares fell 26.2% for the year as of the end of trading last Friday. At the end of 2023, Mercury management had seen its revenue and earnings <a href="https://www.globenewswire.com/en/news-release/2024/02/06/2824704/18849/en/Mercury-Systems-Reports-Second-Quarter-Fiscal-2024-Results.html">decline</a> for its Q2 2024 results due to elevated program and manufacturing costs. Furthermore, Mercury <a href="https://finance.yahoo.com/news/mercury-systems-mrcy-q3-earnings-121800986.html">missed Wall Street estimates</a> in their Q3 2024 earnings report.



More dreadful earnings seasons could send MRCY shares plummeting even more than it has currently, which should signal to current investors that MRCY is one of the defense stocks they will want to sell while they still can.



On the date of publication, Tyrik Torres&nbsp;did not have (either directly or indirectly) any positions in the securities mentioned in this article.&nbsp;The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com&nbsp;<a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/" target="_blank">Publishing Guidelines</a>.



On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
<div>Tyrik Torres has been studying and participating in financial markets since he was in college, and he has particular passion for helping people understand complex systems. His areas of expertise are semiconductor and enterprise software equities. He has work experience in both investing (public and private markets) and investment banking.</div><h3>More From InvestorPlace</h3>
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The post <a href="https://investorplace.com/2024/07/3-defense-stocks-to-sell-in-july-before-they-crash-burn/">3 Defense Stocks to Sell in July Before They Crash &amp; Burn</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.

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