Boeing is flying in the face of its headwinds.
The stock soared 3% in the past week as the company moved to put this year's crises behind it. On Thursday, the aerospace company said it would record a $4.9 billion after-tax charge tied to the groundings of its 737 Max jets. Shares have fallen 15% since a March peak when the company's jet was involved in a second deadly crash within five months.
Boeing's multibillion-dollar charge should give the stock some more clarity, said Steve Chiavarone, portfolio manager at Federated Investors.
"Obviously the 737 Max issue is a bit of an obstacle, … but I think what was so important about the number [last week], even though it was a little bit higher than expected, is that it puts some ring fence around the scope of this problem — and it gave us some indication, maybe some certainty, about timing with deliveries that hopefully are restarting in Q4," Chiavarone said Friday on CNBC's "Trading Nation. "
Bill Baruch, president of Blue Line Futures, says shares could be on their way to recovery.
"You're talking about a stock here that's taken a licking and keeps on ticking," Baruch said on the same segment. "Look at the trend line going back to 2016, and through all of this — the trade war, the 737 Max and Airbus competition — it's held this trend line."
The stock has bounced 14% from its recent low of $330 in early June. It remains nearly 30% above its December trough.
"Not only did it hold that [trend line] in December, it held $300, the psychological level, and then again recently," said Baruch. "There's good momentum now that it's back above the 50- and the 200-day moving average."
The stock broke back above its 50-day and 200-day moving averages last week. It had entered a death cross in June, a technical indicator where a short-term moving average crosses below a long-term moving average, pointing to a decelerating trend.
"There are some headwinds at $390 and $400, but $420 is my target — and this momentum looks bullish right now," said Baruch.
A move to $420 implies 11% upside. It would remain below its $444 March top.
Boeing reports earnings on Wednesday morning.
Disclosure: Federated Investors holds Boeing stock.