Why Shares of Boeing Are Rallying Today
Shares of Boeing (NYSE: BA) gained 40% last week on growing investor optimism that the airline sector is in the early stages of a recovery. The momentum continued on Monday, with Boeing up 12% as of 11:30 a.m. EDT today after two Wall Street banks predicted the stock will continue higher.
Boeing shares have traded with the sort of volatility usually reserved for penny stocks so far in 2020, losing more than half their value in March but storming higher in recent sessions. COVID-19 is responsible for the downward pressure, with the pandemic starving airlines of revenue and forcing them to modify expansion plans.
Travelers are beginning to return, and airlines as a result are starting to rebuild their pre-pandemic flight schedules. We are still in the early days of a recovery, but investors are increasingly hopeful the worst of the pandemic is now behind us, and that's causing shares of beaten-down companies like Boeing to rally higher.
Source Fool.com
