Analysts Weigh In Bullishly on BA, MCD Stocks

Shares of BA and MCD are coming off solid Wednesday performances

Josh Selway
Nov 29, 2018 at 9:16 AM
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Boeing Co (NYSE:BA) yesterday gained nearly 5% amid the broad-market tailwinds, closing atop its 10-day moving average for the first time in over two weeks, while technical traders may have also noticed a quick rebound back above the longer-term 320-day moving average, as well. Prior to Nov. 19, the shares had not closed below this moving average in over two years. BA stock will try to keep the momentum rolling this morning, up 0.9% before the open, thanks to a bullish analyst note.

Cowen this morning moved in and named the blue chip stock its "best idea for 2019," joining the chorus of bullish calls across Wall Street. That is, 12 of 15 brokerage firms already have "strong buy" ratings on the security. The average 12-month price target, meanwhile, stands up at $417.24, compared to yesterday's closing price of $333.50.

Options traders have taken a different approach lately, with data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) pointing to a bearish bias. For example, the 10-day put/call volume ratio across these exchanges is 1.01, and ranks in the 88th annual percentile. Said differently, put buying has been more popular than call buying in the past two weeks, a feat that's rarely seen.

Another Dow component seeing upbeat analyst attention today is McDonald's Corp (NYSE:MCD). Morgan Stanley upgraded the fast food stock to "overweight" from "equal-weigh" and lifted its price target to $210 from $173 -- well above the equity's Nov. 19 record high of $188.88. The brokerage firm believes the steps McDonald's has taken to modernize its restaurants will pay off in 2019 and result in higher sales in the coming years.

The sentiment scene for MCD shapes up similarly to BA's. While the majority of analysts recommend buying the shares, options traders recently have been bearish. The stock's 10-day put/call volume ratio across the ISE, CBOE, and PHLX is 1.21, ranking in the 96th annual percentile.

McDonald's stock is actually set for a record high at the open, last seen trading up 1.4% in pre-market action after yesterday's close at $187.85. The security has been a strong performer during the recent market volatility, adding over 15% in the past three months.


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