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NCR Corporation (NCR), The Boeing Company (BA): A Selection of US Industrial Companies

The reason is simple. The 787 program accounted for 40% of The Boeing Company (NYSE:BA)’s top-line growth last year and should represent more than 80% of its growth during 2013. Besides, as demand for the 787 is driven primarily by secular rather than cyclical factors, the aircraft will help protect The Boeing Company (NYSE:BA) from the budgetary headwinds threatening other parts of the business (such as defense). To give yourself an idea of how important the 787 program is, keep in mind this figure: there is +$20 billion of working capital to be unlocked from inventory.

Trading at 2013 14x P/E and operating in a business with huge barriers to entry (the company is one of only two suppliers of large commercial aircrafts), I believe it could be the time to start looking at The Boeing Company (NYSE:BA)’s shares.

Bottom line

The three companies named above operate in very different businesses within the industrial sector. That said, they are all trading at fair multiples and facing operational changes that could help boost valuations.

The article A Selection of US Industrial Companies originally appeared on is written by Federico Zaldua.

Federico Zaldua has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Federico is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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