Jim Cramer recommends sticking with Boeing for the long haul despite short-term agony

CNBC’s Jim Cramer said Thursday he remains committed to being a Boeing shareholder, even though he acknowledges the aircraft manufacturer remains in a rough patch.

“Sometimes a company’s long-term prospects are so strong that you’ve got to be willing to endure the short-term agony when management screws up, and they are. But that’s why it’s worth it to take the pain in Boeing,” the “Mad Money” host said.

Cramer’s comments Thursday came after American Airlines announced it’s trimming its international flight schedule for next summer, attributing the move to lengthy delivery delays involving Boeing’s 787 Dreamliners.

It was the latest remainder of Boeing’s operational challenges in recent years, including two 737 Max crashes in 2018 and 2019 that killed 346 people in total. The company has also faced headwinds associated with the Covid pandemic and the related slowdown in travel demand.

Cramer said his charitable trust has “been pummeled by Boeing,” which is down 3% year to date after closing Thursday’s session at $207.56 per share. The stock is down about 40% over the past two years.

However, he said his commitment to Boeing’s stock is not because he’s stubborn and can’t admit an investment mistake.

Rather, he said it’s because he believes better days are ahead for the company, including structural demand from airlines upgrading their fleets to newer, more fuel-efficient planes. Additionally, he said continued improvements in the pandemic should spark strong travel demand in 2021.

“While the short-term is absolutely horrible ... I think the long-term is ridiculously bullish,” Cramer said. “If you sell Boeing’s stock here, I think you’ll be kicking yourself, but I don’t know when. I can’t tell. Just like those of us who were foolish enough to sell CVS or Viacom because we couldn’t see when the turn would happen.”

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[chrisbentsen]

Company is loaded up with debt and has a terrible management. Thrown in with a destroyed reputation!

Strong sell!!!!

[Ghanshaman]

Remember that time Cramer Pumped DIDI?

[elitelevel]

Jim keeps saying to avoid companies that are unprofitable yet wants people to own Boeing lmao.

[belly]

build a position now! the runway is long but you'd be so happy when it takes off

[timothyandrews]

I will forever be indebted to you, you’ve changed my whole life I’ll continue to preach about your name for the world to hear you’ve saved me from a huge financial debt with just little investment thanks so much Mrs Leerah Hughs.

[Zippezip]

Management assures you? You are talking about Boeing right?

[steventurner]

I think now would be a good time to buy BA.

[jakekalin]

Bought BA on the dip last year and sold at peak this year, not going to buy it back at this price.

[targetpace]

Boeing is cash flow negative in a rising interest rate environment and without a quick turnaround in sight. I sold after a year of being in BA because the technicals and fundamentals are poor. Better late joining the move up (if or when that happens) than stay in a company that on paper can’t afford to keep the lights on.

[howard]

Boeing management is such a disaster. First the MAX, then the 787...I wouldn't be surprised if there is a grounding of the 777 due to problems with Boeing. It won't matter if there is $1 trillion backlog of orders. Boeing won't be able to deliver planes above the profitable level.

[onebadta]

This dude is obviously bought and paid for..

[sujith]

Damnit. And I was just about to open positions in BA. Guess I’ll wait for the dip

[tomsansone]

Boeing didn't mechanically balance load, but prime-gated programs to compensated...should have taken the bombardier designs, but lost to Airbus...ouch...

[SuperCowboys]

Boeing is a long term stock. If you couldn’t stomach the pain and bought it when it was below $100, then watch it rise as high as $278 and back down to $188? Don’t own it.

[VegasHikes]

U said at $262 China will buy more planes..

[OMAR]

Watching this in May and the stock is trading at $126

[jloos]

Why would you put financial aids into your investment basket?!!!!

[Hawlkeye-ep]

There is a huuuuge rug pull coming. Everything is over valued. Way way over sold.

[xz]

The chinese can make their own planes now. I wonder if the chinese airlines will prefer the more expensive boeing planes.

[idt]

If anyone is actually considering taking a position in Boeing (BA), I would recommend that you first take a look at the etf's JETS and the 3x etf DFEN instead. Both of those have exposure to Boeing but arent anchored down completely by it. Disclosure- I AM NOT A FINANCIAL ADVISOR and this is NOT financial advice, but I do have positions in both JETS and DFEN at this time.