Fly With Boeing's Soaring Returns

Tickers in this article: BA

NEW YORK (TheStreet) -- According to Boeing , airlines throughout Asia will be the buyers of about 36% of all commercial aircraft, or 12,820 airplanes, during the next 20 years. That represents $1.9 trillion in potential sales.

If that isn't an incentive to buy shares of Boeing, I don't know what is.

Boeing forecasts that for longer-distance routes, its twin-aisle airplanes such as the 747-8 Intercontinental, 777 and the 787 Dreamliner will account for 28% of new airplane deliveries. Boeing's recently launched 787-10 and 777X also will support the demand for fuel-efficient twin-aisle airplanes in this fast-growing area of the world.

No wonder the analysts who follow Boeing, on average, estimate revenue to grow by nearly 12% in the first quarter of 2014. Although they predict earnings per share will be down about 8.7% in the first quarter of the year, EPS will rebound in the second quarter and grow by more than 10%.

Next year the company's EPS is forecast to improve by nearly 12% as the benefits of orders in the Asian region kick in. Its long-term market outlook supports Boeing's optimism. This was underscored by the fact that Singapore Airlines already ordered 30 of the 787-10s at the 2013 Paris Air Show and Cathay Pacific recently ordered 21 of the 777-9X airplanes.

Let's look at a five-year chart of Boeing so you can see the stock's "lift off" and pleasing trajectory.

BA Chart
BA
data by YCharts