Boeing's Value Discount: Is It Time to Take the Leap?

Boeing's stock has been underperforming compared to its peers in the aerospace sector, but it may be a value buy for investors. The company's backlog of over 6,200 aircraft is worth $597 billion and provides a significant source of revenue. However, Boeing's valuation discount is largely due to issues such as the 737 MAX quality problems and groundings.

Despite these challenges, CEO Kelly Ortberg has been working to turn the company around. He recently announced that production of the 737 MAX has increased to 47 aircraft per month, up from a low of 30 in 2025. A new production line in Everett, Washington is also being opened to further increase capacity.

Boeing's acquisition of Spirit AeroSystems in December 2025 has derisked its supply chain for fuselages and other components for the 737 MAX, 777, and 787 Dreamliner. The company is also making progress on resolving issues with fixed-price development programs in its defense arm.

While Boeing still needs to convince investors that it can execute on its massive backlog, the signs of progress are promising. With a valuation discount expected to correct beyond 2028, Boeing's stock may be worth considering for value-oriented investors.