The ascent in Boeing comes as Wall Street is expecting some great things from economically-sensitive industrial companies this earnings season.
Perhaps a little too much based on sluggish global growth during the second quarter. Industrials are the most expensive cyclical sector within the S&P 500 based on forward EBITDA (earnings before interest, taxes, depreciation and amortization) multiples, according to Bloomberg data. The space's 10.9 times multiple is noticeably above the five-year average of 9.1 times and long-term average of 8.4 times. Adjusted for standard deviation, the industrials complex trades at the second biggest valuation premium to its five-year average than any other index sector behind tech, Bloomberg data shows.
Of the 67 companies in the S&P 500 industrials sector, only 15 screen as discounted on a forward EBITDA basis, Bloomberg data shows.
Boeing gets extra accolades.
While the Dow Jones Industrial Average average has gained about 3.1% since its May 16 close, Boeing shares have soared 14%. Year to date, the Dow has risen 9.49% while shares in Boeing, the No. 1 performer on the Dow, have jumped 34%.
Ted Reed contributed to this story.
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