August 15, 2020
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Boeing looks like a ‘survivor’ among beat-up aerospace and air travel stocks, portfolio manager says – CNBC

All eyes Wednesday will be on Boeing.

The aerospace company is set to report earnings before the bell in one of the most closely watched releases of the industrial stocks.

Analysts anticipate a second-quarter loss of $2.57 a share, narrower than the $5.82 loss a year earlier when the company was grappling with its 737 Max crisis. Revenue is expected to decline by 18% to $12.95 billion, according to FactSet.

While still dealing with 737 Max issues, Boeing now must contend with a slowdown in the global economy and a sharp drop in air travel demand tied to the coronavirus pandemic.

“The air travel industry is having some issues,” Steve Chiavarone, portfolio manager at Federated Hermes, told CNBC’s “Trading Nation” on Tuesday. “You had that little bit of a recovery after the depths of the shutdown and that progress got stunted as you had these quarantine, these mandatory quarantines and travel restrictions in the United States, and restrictions for U.S. travelers going overseas.”

However, Boeing could be one of the best of a beaten-down group, Chiavarone said.

“No company within the travel-leisure space is a winner right now. What we’re trying to do is separate survivors from companies that won’t. Boeing is likely to be a survivor, but in the short run, it’s just a really challenging environment,” he said.

Todd Gordon, managing director at Ascent Wealth Partners, said the charts suggest Boeing could be moored in a trading range for some time.

“We’re stuck between gap resistance