Buy Boeing Shares Following Big Buy Order From Emirates Airline

Tickers in this article: BA

NEW YORK (TheStreet) -- Boeing shares appear ready for a flight higher following the company's announcement that it sold 150 model 777X airplanes to Emirates Airline. The total list price for all of those planes is $56 billion.

On July 7 I wrote, "Dow 30 Higher as Earnings Begin," and in this post I said that Boeing was the weakest of all Dow Jones Industrial Average components. As of July 3, its shares had lost 5.8% since the start of the year.

Although the Emirates Airline order will not affect Boeing's second-quarter results, it should be talked about in the company's forward guidance. The company plans to report quarterly results before the opening bell on July 23.

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Analysts expect Boeing to report earnings per share of $2.00. This is up a penny from the estimate shown in my July 7 post. On June 23 the company announced a 73 cent-per-share dividend payable on Sept. 5 to shareholders of record on Aug. 8.

The stock is up 21% over the last 12 months and has a price-to-earnings ratio (based on trailing 12-month earnings) of 17.0. TheStreet Quant Ratings has a buy rating for Boeing.

Let's take a look at Boeing's daily chart:

Courtesy of MetaStock Xenith

Boeing opened at $128.31 this morning but faded to as low as $126.04 as of 10:30 a.m. The stock remains below its 21-day, 50-day and 200-day simple moving averages at $130.26, $131.64 and $129.84, respectively. The green line is the 200-day.