Why You Shouldn’t Give Up on Boeing: Insights from Tim Seymour
Welcome to the Extreme Investor Network, where we bring you the sharpest insights from the world of investing. In today’s post, we dive into the rollercoaster journey of Boeing, highlights from seasoned investor Tim Seymour, and what this means for your portfolio. As always, we aim to equip you with information that sets us apart from the rest.
A Challenging Year for Boeing
Last year was undoubtedly tumultuous for Boeing. Quality control issues and a machinists’ strike contributed to a staggering 32% drop in its stock. However, seasoned investors know that market dips can often signal opportune buying moments. According to Tim Seymour, founder and chief investment officer of Seymour Asset Management, now is not the time to walk away from Boeing. In an appearance on CNBC’s "Power Lunch," he made a compelling case for why investors should stay the course.
The Turnaround Story
Boeing’s stock reached its 2024 low at $138.14 last November but has impressively rebounded, gaining nearly 34% since that bottom. Seymour emphatically stated, "I can’t quit Boeing, and it’s the wrong time to quit Boeing." His confidence hinges on what he sees as a stabilization within the company. The unpredictability has been troubling, but Seymour believes Boeing is on the verge of becoming "free cash flow positive" by 2026.
What to Expect: Seymour anticipates that 2025 will be pivotal for Boeing, as the company aims to right its financial ship. With renewed focus on cost management and operational efficiency, investors may see Boeing transition from a cash-burner to a cash-generating machine.
Not Just Boeing—Other Stocks Worth Watching
Seymour also made mention of CVS Health, which faced a 43% decline in 2024 but has recently rallied with a 47% increase at the beginning of this year. The pharmacy giant reported a strong quarter, crushing earnings estimates and demonstrating that successful C-suite changes can spark significant rebounds.
Takeaway: Donovan Joyner, the new CEO of CVS, is steering the company through a turnaround, focusing on margin improvements in Aetna’s health insurance business. This points to the value of considering management changes as part of your investment strategy.
On the flip side, Intel has become a stock Seymour deems unsafe. After a dramatic 60% drop in 2024, shares saw a brief uptick following remarks from Vice President JD Vance regarding U.S. investments in AI and chips. Seymour’s sentiments reveal a deep disappointment, calling Intel a “rudderless ship” in need of strong leadership and a clear strategy.
The Bottom Line
As you formulate your investment strategy, remember that every downturn offers opportunities for thoughtful investors. The contrasting paths of Boeing and CVS underline the importance of looking beyond stock prices and digging into company fundamentals, leadership changes, and market conditions. Seymour’s advice echoes the sentiment that rather than fleeing when stocks dip, we should be analyzing the reasons behind those dips and making informed decisions.
At Extreme Investor Network, we believe that understanding the entire picture—company performance, leadership stability, and economic trends—will help you not just survive but thrive in the investment landscape. Stay alert, keep informed, and don’t hesitate to act when opportunity knocks.
We hope this analysis provides you with the insights you need for your next investment decision. For more unique content and in-depth analysis, stay tuned to the Extreme Investor Network.