Boeing Stock Soars as U.S. Reopens

Boeing’s performance has helped fuel a rally in the Dow Jones Industrial Average, adding 580.60 points to the Dow’s total gain of 2189.33 points so far this month, making it the biggest contributor of the index’s 30 members in that period.

The rebound in Boeing has come alongside a broad rally in other stocks—including airlines, cruise operators and retailers—that were beaten down during the coronavirus pandemic.

The plane maker’s rally is especially striking because Boeing has been grappling with two crises, not just one: a coronavirus-fueled slump in air travel and the grounding of its 737 MAX jet, which has lasted for more than a year, after two crashes linked to a faulty flight-control system.

Boeing stock is still down by 29% since the start of the year—and 48% from its March 2019 record. The company’s shares lost more than two-thirds of their value from February to March as the pandemic led governments around the world to impose travel restrictions, air traffic collapsed and lockdown measures roiled the global economy.

Last week, Boeing shares got a boost after carriers including American Airlines Group Inc. and Delta Air Lines Inc. reported progress in restoring flights this summer, and a stronger-than-expected jobs report indicated that the U.S. economy is on a better footing than many investors had feared.

Boeing has also benefited from the bullish outlooks of some on Wall Street. Over the weekend, analysts at Goldman Sachs Group Inc. raised their price target for Boeing shares to $238 from $209, saying that airlines weren’t cutting back their plane-delivery plans as much as the market expected.

And on Monday, brokerage Seaport Global Securities began publishing research on Boeing, recommending that investors buy it and giving it a price target of $277 a share.

“Absent another Covid-19 wave, we think the worst is now being priced in,” Seaport wrote.

Write to Alexander Osipovich at alexander.osipovich@dowjones.com