Boeing Is The Best Blue-Chip Stock For Your Portfolio
Zacks Investment Research | Feb 22, 2019 07:43AM ET
Dow Jones Industrial Average is arguably the most important measure of U.S. equity prices. This is evident from a simple stat whereby everyday almost five times the number of Americans search for “Dow Jones” in Google compared with “S&P”. And when it comes to weightings, Apple Inc. (NASDAQ:AAPL) (4.5%) and Microsoft Corporation (NASDAQ:MSFT) (2.8%) easily falls short of The Boeing Company (NYSE:BA) (10.9%). Notably, Amazon.com, Inc. (NASDAQ:AMZN) and Alphabet Inc. (NASDAQ:GOOGL) isn’t listed in the Dow, which is a price weighted index.
So, logically Boeing is the most important blue chip stock and the biggest Dow component. Further, it is the best performing Dow stock this year by a wide margin. Thanks to its 10.9% weighting, Boeing had contributed more than 700 points to the Dow so far this year. Meanwhile, the next four big names including Goldman Sachs (NYSE:GS), IBM (NYSE:IBM), United Technologies (NYSE:UTX) and Home Depot (NYSE:HD) contributed only 225, 177, 157 and 133 points, respectively.
Boeing’s Shares Northbound
Going forward, Boeing’s shares are widely expected to rise as the firm frequently tops the list of government contractors. Additionally, the Trump administration’s interest to rebuild the U.S. military by bumping up Pentagon’s budget should certainly bode well for the company. Boeing’s expected earnings growth for the current year is 25.7%, way more than the Zacks Investment Research
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