Boeing (NYSE: BA) and its supply chain have been hit hard by the March 2019 grounding of the 737 MAX, which makes up a substantial portion of the aerospace giant's order book and supports an array of suppliers. Two years removed from the first fatal accident involving the 737 MAX, it appears the plane is nearing regulatory approval to fly again. Shares of one particularly hard-hit supplier, Triumph Group (NYSE: TGI), are up 12% at midday Thursday on growing optimism about the 737 MAX's return to service, and persistent merger rumors surrounding the company.
Commercial aerospace stocks have taken it on the chin this year as the coronavirus pandemic has wiped out demand for air travel and caused the airlines to scramble to cut costs. Shares of Boeing (NYSE: BA) have lost more than half their value year to date, likely tempting bargain hunters to buy in and wait for the eventual rebound in aviation demand. Here's why I believe TransDigm Group (NYSE: TDG) is a better choice for investors interested in commercial aerospace right now.
4 Defense Equipment Stocks Worth a Look Amid Coronavirus Woes