"The Dreamliner is set to become the most significant new product to hit the airline industry in decades," says Horacio Marquez.
The contributing editor and emerging markets specialist with The Money Map Report states, "Of course, the company that's making the dream machine is Boeing (NYSE: BA), which is consider as compelling an investment as I have ever seen."
"In the world of manufacturing, there's nothing more powerful than a technological leap and right now there's something similar going on in the commercial airplane market.
"Airlines are facing some stiff demands. First, passenger traffic and cargo loads are projected to soar, as are the number of long range flights. Yet soaring oil costs are pressuring carriers to cut back on fuel. Second, carriers are also being pressured to slash carbon emissions and to achieve quieter takeoffs and landings, especially as metropolitan areas become even more congested.
"For jet manufacturers, designing a commercial jet that can do these two critical things is no less a technological miracle than the cell phone was 15 years ago. And Boeing is on the verge of making it happen.
"Boeing and Airbus have been swapping the world's market share lead in commercial jetliners back and forth. But now that lead on the world stage is about to shift dramatically to Boeing.
"The advantage Boeing has is a new aircraft dubbed the Dreamliner. And the profits it's about to generate for Boeing are no less astounding. Consider that in the past five years, worldwide commercial aviation revenue has increased 60%.
"The Dreamliner will be 20% more fuel efficient than existing airplanes and produce fewer carbon emissions and have quieter takeoffs and landings. Boeing is achieving these new standards partly by using lighter titanium alloys and carbon fiber, better aerodynamic design, and improved engine technology.
"Boeing right now has built a record-high backlog of 3,544 planes. The global demand for aircraft is no doubt as strong as it's ever been. China alone will require 3,400 new airplanes worth about $340 billion over the next 20 years.
"In fact, over the next two decades, Boeing has forecast that air carriers worldwide will need to acquire 28,600 commercial aircraft – with a value of $2.8 trillion. This huge revenue potential – combined with the low number of viable competitors – is a big reason we view Boeing as a promising global investment for years to come.
"Boeing is very shareholder-conscious, regularly buying back its own stock. In late October, the company said it would repurchase as much as $7 billion more of its own shares. That's merely the latest leg of a buyback program under which the firm already has repurchased $8 billion worth of its stock since 2004.
"Some investors have recently shied away from Boeing's stock because of delays in the Dreamliner. But it's rare to see a program of this magnitude not experience some glitches before the launch.
"Boeing may have to incur some penalties, but the new schedule – which will have the first Dreamliner take flight in the fourth quarter – will enable the company to launch a largely trouble-free jetliner.
"Remember this: The very survival of an airline depends on its ability to compete on price and service, and that's where the Dreamliner fits the bill.
"Boeing is trading at about 11 times earnings – which is at the low end of the stock's historic range of 10 to 24 times earnings. This is a high-quality company that's trading at super-cheap valuation. So strap yourself in and look for some high-flying gains in the months ahead."
Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.
Will Rich Ross really have a positive impact on Disney's movie operations?
Consumers sick of recession, may spend extra on holidays
Corrections, seasonality and Santa Claus
