Few stocks, particularly those previously wearing the blue-chip label, have been as ensconced in controversy in recent years as has aerospace giant Boeing (BA). Over the past three years, the stock returned barely more than 54%, while the S&P 500 climbed 78.5%.
Boeing’s laggard status wasn’t the result of industrial stocks being out of favor. Actually, the S&P Industrial Select Sector Index essentially mirrored the S&P 500’s returns over those three years. That confirms Boeing’s issues were company-specific. Resolution of some of those woes has arrived. And that could open the door to opportunity with the Direxion Daily BA Bull 2X Shares (BOEU). BOEU is a single-stock ETF attempting to deliver 200% of Boeing’s daily performance.
The fund, which debuted in April, strutted its stuff last Friday. It surged on volume that was roughly quadruple the daily average following a Wall Street Journal report indicating the Federal Aviation Administration (FAA) cleared the way for Boeing to perform final safety inspections commercial aircraft. That implies the company could soon start shipping 38 737 MAX jets per month.
BOEU Could Bounce
Those are exactly the type of headlines traders embracing ETFs like BOEU thrive on. While that story is now in the past, there are reasons for short-term speculators to continue monitoring the geared Boeing ETF.
“Assuming its first increment above 38 monthly 737s is imminent, we would expect the next one around the second quarter of 2026,” noted Morningstar analyst Nicolas Owens. “This would allow Boeing to exceed our 2025 737 delivery forecast by about 40 planes, and come in about 30 planes shy of our previous 2026 forecast.”
The FAA news has the potential to provide future “mini-catalysts” for BOEU and shares of Boeing. As Owens pointed out, there will be opportunities for Boeing to steadily update the FAA on its safety and production strides in the months ahead. Good news on those fronts could boost the stock and BOEU.
“CEO Kelly Ortberg has indicated upward monthly production increments of five 737s will each take at least six months, during which Boeing can prove to the FAA that its manufacturing is stable and consistently delivering safe aircraft,” added Owens.
For those who missed last week’s event-driven bounce in BOEU, don’t fret. More could be on the way, particularly if Boeing is able to reach fair resolution with workers at a military jet production factory in the Midwest.
“We anticipate an eventual settlement of the protracted strike and contract negotiations between Boeing and the union representing machinists who work on military jets at its St. Louis plant,” concluded Owens.
For more news, information, and strategy, visit the Leveraged & Inverse Content Hub.
