Boeing stock price had a good 2023: will 2024 be even better?

Boeing (LON: BA) stock price had a good performance in 2023 as the company recorded strong revenue and order growth. The shares jumped by over 33% in 2023 and reached their highest level since March 2021. They have surged by over 131% from their lowest point in 2022.

Strong order growth

Boeing share price had a strong performance in 2023 as investors welcomed numerous tailwinds for the beleaguered company. The biggest catalyst was the ongoing recovery of the aviation sector as more people traveled. According to IATA, airlines revenue are expected to reach over $896 billion this year.

As a result, most big airlines made substantial orders to both Boeing and Airbus. As I wrote recently, Boeing won a large order from Lufthansa, the biggest airline in Germany. The company also received orders from Emirates, which ordered 90 Boeing 777x planes. 

Other airlines that ordered planes from Boeing include Atlas Air, BOC Aviation, Avolon, Air Saudia, and Ryanair. According to its website, Boeing now has a backlog of over 5,300 planes and the number could continue growing. Over 1,000 of these orders came in 2023 while the total backlog stands at over $392 billion. Boeing received thrice as many orders than Airbus at the Dubai Airshow.

The other important catalyst was the decision by China to allow 737 Max and 787 deliveries to the country. This was a notable thing since China is one of the most important aviation markets in the world. It is a large country geographically and has a huge population.

The most recent results showed that Boeing’s revenue came in at over $18.1 billion in Q3, up by 13% from the same period in 2022. This revenue growth was mostly because of the company’s commercial revenue, helped by 787 deliveries. 

Still, Boeing had some notable problems during the year. For example, it experienced some fuselage problems from those manufactured by Spirit AeroSystems. This challenge impacted its 737 deliveries. 

Therefore, baring any new challenges, I think that 2024 will be a good year for Boeing as the company enters a new normal. As you recall, Boeing has been through a rough patch in the past few years, which led to losses. This new normal could see it ramp up production and return to profitability in 2024.

Boeing stock price forecast

Turning to the weekly chart, we see that the BA share price has been in a strong uptrend in the past eight weeks. It recently moved above the key resistance point at $242.92, its highest swing on March 31st. It invalidated the double-top pattern by moving above that level. 

Boeing is hovering at the 50% Fibonacci Retracement level and is above the 50-week and 25-week moving averages. Therefore, I suspect that the stock will do well in 2024, with the initial level to watch being $278.31, its highest swing in March 2021. A break above that level will see it rise to the 61.8% Fibonacci retracement point at $303. This target is about 17% above the current level.