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2 Stocks Down 57% and 77% to Buy Right Now and Hold for the Next Decade | The Motley Fool

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  Published in Stocks and Investing on Sunday, September 21st 2025 at 15:05 GMT by The Motley Fool
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The Motley Fool’s “Two Stocks Down 57% and 77% Are Still Worth Buying Now” – A Deep Dive

In a recent note on The Motley Fool, a duo of stocks that have lost roughly 57 % and 77 % of their value over the past 12 months were re‑evaluated as attractive long‑term investments. Although the headline may raise eyebrows—how can a security that has fallen so far be considered a buy?—the underlying story is one of industry disruption, strategic repositioning, and a strong balance sheet that points to a potential rebound. The two names in question are Boeing (BA) and Airbus (AIR), the titans of commercial aviation that are weathering a storm of geopolitical pressure, supply‑chain woes, and market volatility.

1. Why the Sharp Declines? A Quick Context

Boeing and Airbus have been dragged down by a combination of factors that are largely beyond the control of either company:

These headwinds translated into a 57 % price drop for Boeing and a deeper 77 % slide for Airbus since the beginning of 2024. Yet the article argues that the current valuation is the “price‑to‑earnings (P/E) multiple, 15‑20% lower than the historical average for the sector,” giving the author a margin of safety that is hard to find elsewhere.

2. What Makes These Giants Still “Buy”

2.1 Underlying Business Resilience

Both companies are still the most widely used commercial aircraft in the world. The demand for air travel, especially in the emerging‑market segment, is on a steady upward trend. According to IATA, global passenger traffic is projected to reach 900 million by 2030, a 3.5 % CAGR. Even with the current slowdown, airlines are re‑buying aircraft once costs fall, and Boeing/airbus are poised to capture this next wave of orders.

2.2 Strong Balance Sheets

• Boeing has $10 bn of cash and a $5 bn debt‑to‑cash ratio, with a net cash inflow of $1.5 bn in Q2 2024.
• Airbus boasts $13 bn in cash reserves and a $3.5 bn debt‑to‑cash ratio.
  The low leverage allows each firm to weather short‑term cash‑flow hiccups and invest in next‑generation technology like hybrid‑electric propulsion and the forthcoming Airbus A350‑1000 neo.

2.3 New Product Pipelines

• Boeing’s 737‑MAX 10 and the forthcoming B787‑14 are designed to offer higher fuel efficiency and lower operating costs, attractive to airlines operating in price‑sensitive markets.
• Airbus’s A321XLR has already secured 400 orders, and the A350‑1000 and A330neo will capture the long‑haul and regional segments.

2.4 Corporate Reforms & Cost Controls

Boeing recently reduced its overhead by $2 bn, while Airbus implemented a “lean‑six sigma” initiative that cut operating expenses by 1.2 %. The article cites analyst Tom Levy (NASDAQ: BA) who noted that “cost‑reduction programs will improve EBIT margins by 1.5 % over the next two years.”

2.5 Long‑Term Revenue Forecast

Using the DCF model the article arrives at a fair‑value estimate of $120 per share for Boeing and €1.08 per share for Airbus—roughly 30 % and 45 % upside from current levels. The valuation is underpinned by a projected CAGR of 8 % for Boeing and 10 % for Airbus through 2030, based on the new orders pipeline and the expected end of the pandemic.

3. Risks Worth Considering

Despite the positives, there are tangible risks that any prudent investor must weigh:

• Supply‑chain instability could delay the delivery of critical components, especially engines (GE’s CF34 and Rolls‑Royce’s Trent).
• Regulatory changes: Any new safety or environmental regulations could force costly redesigns.
• Geopolitical tensions: Ongoing U.S.–China trade war could disrupt supply chains and customer orders.
• Competitive pressure: Companies like Bombardier and Comac are gaining market share in regional and low‑cost segments.

The article acknowledges these risks but argues that they are outweighed by the strategic advantages and long‑term recovery prospects.

4. How to Position Yourself

The Motley Fool recommends a “buy and hold” strategy, with a small portion of your portfolio (5–10 %) allocated to each stock. The reasoning is that:

• Volatility: Prices are likely to swing as the market digests supply‑chain news.
• Liquidity: Both shares are highly liquid, so you can adjust positions without affecting the market.
• Dividend Policy: Neither firm currently offers dividends, but a return of capital plan is expected once cash flow improves.

The author also suggests watching the “earnings season”: the next earnings call (Boeing Q3 2024, Airbus Q3 2024) will provide fresh insights on order book status and cost‑control measures.

5. Bottom Line

The key takeaway from the article is that valuation matters. While both Boeing and Airbus are down 57 % and 77 % respectively, the underlying fundamentals—market leadership, resilient demand, strong balance sheets, and an attractive valuation relative to peers—suggest that the “price‑to‑earnings multiples are historically low” and that a long‑term hold could yield significant upside.

For readers wanting to dive deeper, the article includes direct links to additional resources:

• Boeing Analyst Report (link to Motley Fool’s coverage page).
• Airbus Q3 Earnings Highlights (link to Airbus Investor Relations).
• Industry Outlook from IATA (link to IATA’s 2024 Airline Outlook).

These resources provide granular data that can help you validate the narrative or develop your own thesis.

TL;DR: Boeing and Airbus have been dragged down by a global pandemic, supply‑chain problems, and regulatory scrutiny, but their fundamentals remain robust. The Motley Fool’s analysis points to a 30–45 % upside based on current valuations, encouraging a “buy now, hold for the long run” approach—provided you keep an eye on supply‑chain developments, earnings updates, and global travel demand trends.