Aviation Industry: Boeing, Airbus, and Embraer

Current Events:

  • Boeing: Recently appointed a new CEO, Kelly Ortberg, as the company struggles with multiple crises, including safety concerns, financial losses, and legal issues. Boeing reported a $1.4 billion loss in Q2 2024, with a 15% drop in revenue year-over-year.
  • Airbus: Under criminal investigation in the UK for potential export control violations. Airbus also faced reduced order numbers at the Farnborough Airshow due to supply chain issues.
  • Embraer: Outperformed expectations with an 88% increase in Q2 2024 deliveries, and the stock has surged over 74% this year. The company shows strong revenue growth, projected at 28% for the year.

Stock Impact:

  • Boeing: Ongoing challenges and financial losses suggest continued volatility. The negative sentiment may weigh on the stock.
  • Airbus: Legal issues could negatively impact stock performance, though specifics are still unfolding.
  • Embraer: Strong growth and increasing deliveries position it favorably in the market.

Action:

  • Boeing: Sell or Hold with Caution. Given the company’s current challenges, consider reducing exposure.
  • Airbus: Hold with Caution. Uncertainty around legal issues may cause volatility.
  • Embraer: Buy or Hold. Strong performance and positive outlook make it a good candidate for continued investment.

Beverage Industry: Diageo

Current Events:

  • Diageo reported a decline in organic net sales, the first since the pandemic’s onset, primarily due to weakness in Latin America and the Caribbean. However, Guinness saw a 6% increase in sales, with notable growth in its non-alcoholic version.

Stock Impact:

  • Diageo: The overall decline in sales might pressure the stock, but growth in popular brands like Guinness provides a silver lining.

Action:

  • Hold or Buy Selectively: While the general outlook is mixed, investing in Diageo’s successful segments like Guinness could be a strategic play.

Cybersecurity: CrowdStrike

Current Events:

  • CrowdStrike faces significant challenges, including a nearly 9.7% drop in stock price following legal action from Delta Air Lines over an outage. The stock is down over 40% in the past month.

Stock Impact:

  • CrowdStrike: Ongoing legal issues and financial losses have created significant negative sentiment around the stock.

Action:

  • Sell or Hold with Caution: The current challenges and potential liabilities suggest it may be prudent to reduce exposure.

Social Media: Meta Platforms

Current Events:

  • Meta is under federal scrutiny for running ads that lead to illegal drug marketplaces. Despite efforts to control these issues, Meta continues to face regulatory challenges.

Stock Impact:

  • Meta: Ongoing scrutiny and legal issues could contribute to stock volatility.

Action:

  • Hold with Caution: Regulatory risks may impact the stock, but Meta’s overall market position remains strong.

Summary Recommendations:

  1. Boeing: Sell or hold with caution due to financial and legal challenges.
  2. Airbus: Hold with caution, considering legal uncertainties.
  3. Embraer: Buy or hold, benefiting from strong performance and outlook.
  4. Diageo: Hold or buy selectively, focusing on strong-performing segments.
  5. CrowdStrike: Sell or hold with caution, given current challenges.
  6. Meta Platforms: Hold with caution, balancing strong market position with regulatory risks.