CNBC had a sensational headline last week about Boeing (NYSE:BA) that suggested more pain was in store for Boeing stock.

“Boeing shares are in a tailspin,” began the Dec. 7 article. “The aerospace giant has plummeted 8 percent in the past two trading days, pushing the stock into a correction. It is now down more than 10 percent from its 52-week highs.”

I would hardly call a stock down 18% from its 52-week high of $394.28, plummeting. That’s especially true given it’s still up 13% year to date through Dec. 10.

Is there increased volatility in Boeing stock these days? You better believe it.

“In terms of volatility, that’s what’s changed most aggressively in this stock,” Susquehanna analyst Stacey Gilbert said on CNBC’s Trading Nation Dec. 6. “Over the last two years, the likelihood that Boeing was going to be up or down 40 percent over a one-year period was implied in the market at roughly 5 percent. It’s now almost seven times as likely.”

If you don’t own Boeing stock, there’s a much higher possibility that you’ll be able to pick it up for less than its current share price of $322, then there was a year ago.

On the flip side, there’s also a greater chance that it could move significantly higher over the next 3-6 months, compared to this time last year.

So, is it a buy or a sell?

Boeing Stock Is a Buy

My wife recently flew on one of Boeing’s relatively new 737 Max 8’s. She doesn’t fly as much for work as she once did but she’s no rookie when it comes to business travel.

She was very impressed. And she’s not the only one.

The plane’s been selling quite well with airlines around the world. Something like 76 airlines have ordered a 737 Max through the end of October, an average of 63 planes per airline; it’s delivered 241 of those to 40 airlines, an average of six per airline.

Business is so good for Boeing that Cowen recently called it the number one aerospace stock for 2019.

“Most investors miss the power of BA’s favorable production environment and potential to deliver extended cash flow ramp. Concern over recent headline risks (Lion Air crash, Saudi arms sale restrictions, etc.) also look overblown,” Cowen’s Cai von Rumohr said in a note to clients.

“Given visibility of a seven-year backlog and still-solid traffic growth, it would take a sharp economic slowdown to disrupt the favorable current production outlook,” the analyst said.

It’s never easy operating a business that has mass-casualty events on an infrequent basis. People tend to forget that planes do crash.

Boeing will fix what ails the 737 Max because it is too good a plane to let it fail.

At $320, BA stock is growth at a reasonable price. Below $300, it’s a bargain.

Boeing Stock Is a Sell

Pilots at American Airlines (NASDAQ:AAL) are looking for more training on the 737 Max to understand better the aircraft’s anti-stall software, which might have contributed to the Lion Air crash.

In late November, the Allied Pilots Association (APA) sat down with Boeing to make the formal request for additional training.

“The APA is asking American ‘to consider additional days of training for these significant differences in the NG and the MAX,’” the Seattle Times reported Dennis Tajer, a spokesman for the union and a 737 captain at the airline, said.

Boeing is working to bolster confidence in its systems after pilots from American and Southwest said they weren’t informed about a flight-control system on the MAX that can pitch the aircraft’s nose downward if it suspects the plane is losing lift under its wings.”

Airlines don’t want their pilots lacking the confidence to get behind the controls of a plane.

According to the Seattle Times, the president of Southwest Airlines’ (NYSE:LUV) pilots association, Boeing has solutions that will be in place by the end of the year.

For the sake of BA stock, shareholders better hope so, or it’s lights out for the company in 2019.

The Verdict

In April, I suggested that Boeing stock could hit $1,000 over the next five years because it’s growing free cash flow at such a rapid pace.

Five years ago, Boeing had $5.9 billion in free cash flow; in the trailing 12 months ended Sept. 30, it had more than doubled to $13.6 billion.

As the Cowen analyst suggested, unless the economy hits a serious landmine, Boeing is worth more than $320 in my opinion.

How much more, I guess we’ll find out. In the meantime, I believe Boeing stock is a buy.

As of this writing Will Ashworth did not hold a position in any of the aforementioned securities.