Skyrocket Your Gains: This Aerospace Stock Soars as Boeing Stumbles, Says Expert Portfolio Manager
GE Aerospace is poised for significant success amid Boeing’s persistent manufacturing difficulties, according to Chris Smith from Artisan Partners. Smith, a portfolio manager at Artisan’s Antero Peak Group, highlights that GE’s new Leap engine has effectively monopolized the market for narrow-body planes. This engine is expected to power over 80% of such aircraft within the next decade. Ongoing delivery delays from Boeing, compounded by a January incident involving the 737 Max 9, have intensified airlines’ reliance on older models and bolstered demand for GE products.
Smith regards GE as a top-tier industrial stock, citing its strong market position and the broader trend of reshoring U.S. manufacturing. He also notes that TransDigm, a producer of aircraft components, is another company benefiting from these dynamics. The aerospace and defense sector has seen a robust performance in 2024, with the iShares U.S. Aerospace & Defense ETF (ITA) gaining nearly 16% this year.
GE shares have surged 70% in 2024, while TransDigm has risen by 35%. In stark contrast, Boeing’s stock has tumbled 34% this year as the company deals with increased scrutiny and financial setbacks, including a wider-than-expected loss in Q2 and a revenue shortfall.
Smith also underscores that GE stands to gain from the resurgence of U.S. manufacturing, which is accelerating as global supply chains shift closer to home. This trend reflects a broader move towards de-globalization, creating new opportunities for companies like GE.
Original Story https://www.cnbc.com/2024/09/02/this-aerospace-stock-could-win-big-from-boeings-woes-portfolio-manager-says.html
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