WATCH: Stock pick — Boeing

Craig Pheiffer from Absa Stockbrokers & Portfolio Management chose Boeing as his stock pick of the day.

Pheiffer says Boeing should have double-digit earnings growth in the next three years.

“Boeing is saying that they plan on delivering another 42,000 planes over the next 20 years, two new airlines, plus growth as well as replacements where they will be doing the after-market sales and servicing. Given that the PE [price-earnings ratio] is around 23 on current earnings [and]  will get down to about 17 in 2020 where the earnings growth will be coming through and their dividend yield will be at 2%. They also have $195bn in market cap.”