Per a Media release The Boeing Co. BA recently opened its first 737 completion plant facility in Zhoushan, China. This was a strategic investment move by the company, which aims at giving a tough competition to one of its biggest arch-rivals, Airbus SE EADSY, in one of the world's top travel markets.

The Zhoushan manufacturing site, which is located about 180 miles from southeast Shanghai. Boeing sets a target to reach a total of delivering 100 planes a year from Zhoushan facility.

In 2017, Boeing invested nearly $33 million to purchase a majority stake in a joint venture with state owned Commercial Aircraft Corp of China (COMAC) in order to build the completion center, which installs interiors and paints liveries.

Boeing’s 737

Boeing produces 52 airplanes of 737 series per month and has plans to expand production volumes to 57 a month in 2019. The company has a total backlog 4,654 airplanes of the 737 series. The backlog of 737 airplanes is expected to further increase owing to its unique features offered to customers.

Also, Boeing 737 MAX is enjoying brisk demand in the single-aisle market for its fuel efficiency and low carbon dioxide emissions. Powered by Commercial Fan Motor (CFM) International LEAP-1B engines, the Advanced Technology winglet of this airplane enhances its performance.

Commercial Airplane — Outlook

Per the long-term guidance provided by Boeing, demand for commercial airplanes is expected to double in the next two decades. The requirement for new planes will touch 42,730 by 2037. The single aisle segment is expected to witness maximum growth with a need for 31,360 airplanes. Total value of the commercial aeroplane market with commercial airplanes and services will attain nearly $15 trillion.

According to the company’s view, China is on course to become the largest commercial aviation market in the world. It is also estimated that the country will need nearly 7,700 new airplanes worth $1.2 trillion over the next 20 years. We believe, Boeing — a premier single-aisle commercial aeroplane — will be a major player with its 737 family.

Price Movement

In the past 12 months, Boeing has returned 7.7% versus its industry’s decline of 4.3%.

Zacks Rank & Other Key Picks

Boeing currently has a Zacks Rank #2 (Buy). Other top-ranked stocks from the sector include Lockheed Martin Corporation LMT and Raytheon Company RTN, each carrying a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Lockheed Martin delivered average positive surprise of 13.92% in the last four reported quarters. The Zacks Consensus Estimate for 2018 has moved 2.9% north in the past 90 days to $17.51.

Raytheon delivered average beat of 6.71% in the last four reported quarters. The Zacks Consensus Estimate for 2018 bottom line has been inched 1.8% up in the past 90 days to $10.10.

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

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