Every company will run into trouble at some point. For investors, it’s critical to know when the biggest dangers have passed. One sign is that even when facing bad news, the share price either doesn’t respond to it, or the stock goes up.
That could be a sign that the turnaround is underway. And that things are starting to finally look up. Buyers who wait for this early signal can often see great returns from a new trend higher.
For instance, airline manufacturer Boeing (BA) has been rocked with several scandals in recent years, and its shares have definitely paid the price. However, the company is getting its production facilities restarted, and is making strides on improving quality control.
Shares are still down by over 35% in the past year. But shares are now also up over 20% from their 52-week low, a strong sign that a new uptrend is underway. If increased production can mean a shift back to profitability, investors could see big gains from here.
Action to take: Speculative investors may like shares here for further upside in the months ahead. Currently, Boeing does not pay a dividend.
For traders, a call option may be the better play on a new uptrend from here. The March 2025 $190 calls, last trading for about $6.50, could see mid-double-digit returns from a further rally into next spring.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.