Boeing Fell Back Below $200 Ahead of a Strike Deadline. Here's Why I'd Buy the Fear After New Contracts Were Signed

Some companies learn the hard way that tussling with organized labor often isn't a winning proposition, and when those disagreements are lengthy and public, nobody wins. But there are plenty of losers, including the company itself, its workers, and shareholders.

It looks as if Boeing (NYSE: BA) got that memo because earlier this month, the aerospace and defense Goliath averted a strike with 17,000 engineers and technical workers. For many of the largest industrial companies by market cap, of which Boeing is one, engineers and technical staffers are among the most essential personnel, so keeping them happy is a good idea.

Boeing may have accomplished that objective as the Society of Professional Engineering Employees in Aerospace came away saying it notched some wins it previously thought "were completely out of reach." Still, Boeing shares are off 11.3% over the past month, extending a bear market in which the stock is down 26.7% from its 52-week high. Those are ominous statistics, but I see opportunity in this decline.

Boeing's a battlefield, but it has positives

Undoubtedly, Boeing has its warts. On the commercial aircraft side of the equation, which has been a thorn in the stock's side for multiple years, Boeing previously warned that supply chain issues could present production snags in its 737. Compounding the issue, an autopilot software "glitch" prompted a Sept. 28 sell-off in the shares.

Still, the defense side of the Boeing coin is appealing. The U.S. Navy recently chose Boeing over rival Northrop Grumman to deliver (likely in the 2030s) the sixth generation of carrier-based fighter jets. For fans of avionics and movies, the plane that will eventually replace the vaunted F-18 Super Hornet. This is an important, potentially lucrative contract for prospective Boeing investors to consider because, as just one example, F-18s were among the jets that flew more than 14,000 "sorties" (military speak for flight missions) during the USS Abraham Lincoln's recently concluded deployment.

That contract win came after the Air Force chose Boeing to develop the F-47, the plane that will replace the F-15. Arguably, there's an element of prestige in that contract win that Boeing's share price isn't reflecting because, in air-to-air combat, also known as dogfighting, the F-15 is undefeated.

Just my two cents, but I believe Boeing deserves some credit for a contract win to develop the replacement for what some experts believe is the greatest fighter jet ever built. That credit should be accentuated at a time when Uncle Sam is boosting defense spending with an eye toward cementing U.S. air dominance for years to come.

Maybe a revolutionary idea

Boeing is 110 years old, so calling it "old" is accurate, while labeling it "revolutionary" may seem like a stretch. But another reason this stock piques my interest is its credible ties to an emerging "modern-day industrial revolution," which some analysts believe is being ushered in by aerospace and defense companies.

In fact, Barclays analyst Anthony Valentini recently mentioned Boeing as a potential winner in an industrial revolution scenario.

Investors need not worship at the altar of everything analysts say. Still, there may be comfort in knowing Boeing has made some revolutionary inroads and is supported by government contract victories.

Todd Shriber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Boeing and Northrop Grumman. The Motley Fool recommends Barclays Plc. The Motley Fool has a disclosure policy.