Analysts Are Bullish on These Industrial Goods Stocks: Boeing (BA), Core & Main (CNM)

Boeing (BA) will cut 2,500 jobs (5% of its workforce) due to production delays, despite a record $745B backlog. The 737 MAX production rate remains below target, impacting deliveries. The company's commercial airplanes division lost $697M last quarter, with a negative 6.5% operating margin. BA stock is down 21% in 2026.

Boeing won a $3.5B contract for the F-47, a next-gen fighter under the Next Generation Air Dominance initiative, beating Lockheed Martin. The Air Force cited Boeing's digital maturity and lower risk. Lockheed will focus on F-35 upgrades. The F-47 aims to ensure US air superiority into the 2030s, combining crewed and autonomous systems.

Boeing plans to cut 5% of its Commercial Airplanes workforce, citing production delays in the 737 and 787 programs. CEO Stephanie Pope linked the layoffs to slower-than-expected production ramps. The company missed Q3 earnings expectations, raising concerns about cash flow and recovery timelines. Boeing's shares fell nearly 10% post-earnings. The company has a $745 billion backlog but has not recorded an annual operating profit since 2018.

The FAA ordered inspections on 2,000 Boeing 737 Next Generation jets, excluding the 737 MAX, due to potential issues with the tail's horizontal stabilizer. The mandate, effective November 23, 2026, applies to models 737-600 through 737-900. Airlines like Southwest, United, American, Delta, and Alaska operate these jets. The FAA emphasized safety, rejecting airlines' requests for extended timelines. Inspections may cause delays if replacements are needed.

Boeing plans to cut 5% of its commercial airplanes workforce due to slower production. Virgin Australia delayed its 737 MAX 10 delivery to mid-2028. CEO Kelly Ortberg expects stable production of 47 planes/month by next year, with 52/month targeted for late 2027. The company aims to align staffing with its revised business plan, with layoffs beginning in December.

Boeing plans to cut 2,500 jobs (5% of its workforce) due to slower production increases, delaying its 737 output target to 2027. Ethiopian Airlines, with 88 Boeing aircraft on order, faces potential delays. Boeing now expects $10B in annual free cash flow by 2029, a year later than anticipated.