CVX - 3 Dow Stocks You'll Wish You Bought Before They Go Through the Roof
2023-04-15 05:03:00 ET
A member of the Dow Jones Industrial Average isn't likely to make investors rich in a hurry. That said, a few of them, namely Boeing (NYSE: BA) , Chevron (NYSE: CVX) , and Caterpillar (NYSE: CAT) , have the potential for long-term price appreciation that could leave their current prices looking like a bargain. Here's why.
With its only major global competition coming from Airbus, Boeing has the market position to flourish. In addition, with an end-of-year 2022 backlog of 3,653 Boeing 737s, 505 Boeing 787s, and 244 Boeing 777Xs, the aerospace giant has a multi-year backlog to fill for airlines .
Boeing also has a plan to reach $10 billion in free cash flow (FCF) at some point between 2025 and 2026. Provided Boeing's current market cap of $126 billion stays the same, this implies a price-to-FCF multiple of just 12.6 times 2025 FCF -- a highly attractive valuation for a company with such a strong market position.
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3 Dow Stocks You'll Wish You Bought Before They Go Through the Roof