Inside the S&P 500 AI boom, industrials are getting as rich as tech stocks
The defense contractor reported quarterly earnings this week that beat on both earnings and revenue, leading to a post-earnings rally of over 10% on Thursday. LMT and its peer RTX Corp., which is the fourth-largest holding in XLI, are both up roughly 35% over the past year. That momentum, however, has faded, with the NASA ETF down close to 20% over the past month.
- ▪The defense contractor reported quarterly earnings this week that beat on both earnings and revenue, leading to a post-earnings rally of over 10% on Thursday.
- ▪LMT and its peer RTX Corp., which is the fourth-largest holding in XLI, are both up roughly 35% over the past year.
- ▪That momentum, however, has faded, with the NASA ETF down close to 20% over the past month.
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Inside XLI, it's not just the AI boom that is supporting stock valuations, and dozens of other industrials ETFs have been launched targeting multiple niches within the sector."There are over 60 industrials ETFs that fall into that sector category, and collectively they've seen about $23 billion in net inflows year-to-date," Murphy wrote in an email to CNBC. "Industrials have not only performed really well relative to the market, but industrials ETFs have seen momentum in asset gathering (relative to recent years) as investors focus on the secular growth trends tied to the AI infrastructure buildout as well as to [the] aerospace and defense theme."Lockheed Martin, one of the top 20 stocks in the industrials index, is part of a defense industry that has boomed on the increase in defense…
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