Dogs or Darlings? The Dow's 5 Cheapest Picks

Forward P/E: 9.6
Five-Year Average P/E: 18.4
Discount to Five-Year Average: 48%

As the world's largest maker of commercial and military aircraft combined, few companies are as sensitive to a global slowdown as Boeing (BA). Of more immediate concern is the status of its vaunted 787 Dreamliner program, so woe unto Boeing shareholders when the company said Tuesday that the first test flight of the giant jet would be delayed -- yet again. "Boeing has got to get the 787 in the air," says Jefferies analyst Howard Rubel, who rates shares at Outperform. True, the airplane industry didn't go through the same vicious boom-and-bust cycle of previous recessions, Rubel points out, meaning Boeing could be in for a soft landing. Also favoring the company are opportunities for further cost cuts and -- with oil back up at $70 a barrel -- demand for newer, more fuel-efficient planes. For investors with three- to five-year horizons, Boeing looks compelling at these levels, but uncertainty over the 787, as well as a rebound in global air traffic in 2010, makes these shares look fairly priced over the next 12 to 18 months.

Bottom Line: Dog