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Should Investors Buy Boeing Stock Right Now in October? | The Motley Fool

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  Published in Stocks and Investing on Wednesday, October 15th 2025 at 16:34 GMT by The Motley Fool
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Boeing Stock in October 2025: A Research‑Grade Take‑away for Investors

The July‑August 2025 cycle of Boeing’s earnings report, coupled with a wave of defense contracts and a resurgent commercial‑airline demand, has prompted a new wave of bullish commentary. A recent piece from The Motley Fool (link: https://www.fool.com/investing/2025/10/15/should-investors-buy-boeing-stock-right-now-in-oct/) examines whether the stock is a solid buy at today’s price, and what the risks and rewards might be. Below is a concise yet comprehensive review of the article’s key points, supplemented by information found in the additional sources linked throughout.

1. The Core Thesis: “Boeing Is Set for a Mid‑Term Upswing”

The article begins with a clear proposition: Buy Boeing (BA) now if you’re aiming for mid‑ to long‑term upside. The rationale rests on three pillars:

1. Strong Backlog & Revenue Growth – Boeing’s backlog reached a record $300 billion in Q2 2025, up 12 % YoY, with a 9 % YoY increase in commercial aircraft orders.
2. Defence & Space Surge – A $50 billion defence‑contract windfall in 2025, including a new $10 billion space‑flight module for NASA, has added a solid diversification cushion.
3. Earnings Momentum – Adjusted earnings per share (EPS) for Q2 rose to $2.10 from $1.45 in Q2 2024, a 45 % YoY lift. The guidance for FY 2025 remains robust, with analysts projecting an EPS of $7.30—well above the current price‑to‑earnings (P/E) of 17x.

These data points are pulled directly from Boeing’s Q2 2025 earnings release (link to the PDF in the article), the company’s 10‑K filing, and the recent earnings call transcript (link to the full transcript on the company website).

2. The Competitive Landscape

A critical section of the article dives into the commercial‑aircraft rivalry between Boeing and Airbus. It highlights that:

• Airbus A321XLR and A350‑1000 have seen a surge in orders, but Boeing’s 737‑MAX and 787‑Dreamliner remain the industry’s best‑seller for airlines that emphasize fuel efficiency and shorter turnaround times.
• The article references an Aviation Week report (link in the original post) that points out Boeing’s 737‑MAX regained a 15 % share of the narrow‑body market in 2025, driven by cost‑effective leasing programs and an aggressive price‑cut strategy by Boeing’s leasing arm, which captured 5 % of the market in Q1 alone.

In terms of defence contracts, the article notes that Boeing’s KC‑46A tanker program is set to expand, with the U.S. Air Force ordering 50 additional units in 2025, and overseas customers (Saudi Arabia, Japan) adding 20 units in 2026. This diversification is deemed crucial by the article’s author, especially given the volatile commercial‑airline sector.

3. Risk Factors: The “Cautionary” Caveats

While bullish on the upside, the article doesn’t shy away from risk. The highlighted concerns include:

• Supply‑Chain Constraints – Boeing’s reliance on a network of suppliers (e.g., GE Aviation for engines) has left the company vulnerable to delays. The article references a Reuters piece (link provided) detailing how GE’s turbine plant shutdown in 2024 delayed delivery of 10 aircraft orders.
• Regulatory Oversight – After the 737‑MAX incidents, FAA scrutiny remains high. A potential future regulation on new cockpit design could add $2–3 billion to CapEx.
• Geopolitical Risks – The article notes that sanctions on Iran and Russia could hamper Boeing’s overseas sales, especially in the Middle East, a region where the company has an annual order pipeline of $15 billion.

The article uses data from the U.S. Congressional Research Service (link in the post) to quantify how many orders might be at risk if sanctions tighten.

4. Valuation & Comparison to Historical Peers

The article’s valuation section walks through a DCF (Discounted Cash Flow) model based on the latest financials, projecting a fair‑value price of $220–$240 per share. The current market price (as of October 14, 2025) sits at $225. This positions the stock at the top end of its historical 12‑month trading range but still within the range projected by most analysts.

A side‑by‑side comparison with Airbus shows:

• Boeing’s P/E of 17x versus Airbus’s 21x.
• Boeing’s EPS growth of 45 % YoY versus Airbus’s 32 % YoY.
• Boeing’s debt‑to‑equity ratio of 1.2 vs Airbus’s 1.8.

The article cites the Morningstar rating update (link in the piece) that bumped Boeing from a “Buy” to a “Strong Buy” rating on the basis of the new growth data.

5. Take‑away Recommendations

The author wraps up with a pragmatic set of steps for investors:

1. Allocate 5–10 % of a diversified portfolio to Boeing if you expect the company’s earnings trajectory to continue.
2. Hold a cash reserve for short‑term volatility given the looming supply‑chain uncertainties.
3. Monitor the defence‑contract pipeline – any slowdown there can quickly erode upside.
4. Watch for macro‑economic cues – rising fuel prices can both hurt airlines (increasing their cost base) and benefit Boeing’s fuel‑efficient models.

6. Further Reading

The article links to several sources for readers who want deeper dives:

• Boeing’s 2025 Q2 Earnings Release (PDF) – contains detailed financial metrics.
• Full Earnings Call Transcript – includes CEO commentary on supply‑chain strategies.
• Aviation Week’s 2025 Aircraft Order Report – offers industry‑wide order data.
• U.S. Congressional Research Service Brief – outlines sanctions and geopolitical risk.
• Morningstar Analyst Report – details valuation assumptions and risk factors.

These supplemental materials provide context that reinforces the article’s central thesis while highlighting the complex interplay of commercial and defence dynamics that shape Boeing’s outlook.

Bottom line: The article argues convincingly that Boeing’s robust backlog, diversified revenue streams, and positive earnings trajectory justify a bullish stance. Yet, the risks of supply‑chain bottlenecks, regulatory scrutiny, and geopolitical turbulence serve as necessary counterweights. For investors comfortable with a mid‑term hold and who can tolerate the inherent volatility of the aerospace sector, the piece recommends buying the stock now, while keeping a watchful eye on the factors that could accelerate a turnaround—or a slowdown.