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Howmet (HWM) Falls More Steeply Than Broader Market: What Investors Need to Know
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Howmet (HWM - Free Report) closed the most recent trading day at $176.22, moving -5.32% from the previous trading session. This move lagged the S&P 500's daily loss of 0.11%. Meanwhile, the Dow gained 0.91%, and the Nasdaq, a tech-heavy index, lost 0.82%.
Coming into today, shares of the maker of engineered products for the aerospace and other industries had gained 7.81% in the past month. In that same time, the Aerospace sector gained 5.27%, while the S&P 500 gained 5.17%.
The investment community will be closely monitoring the performance of Howmet in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.87, marking a 29.85% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $1.99 billion, indicating a 5.92% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.47 per share and revenue of $8.06 billion. These totals would mark changes of +29% and +8.48%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Howmet. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.33% higher. Howmet is currently sporting a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Howmet has a Forward P/E ratio of 53.7 right now. This valuation marks a premium compared to its industry average Forward P/E of 24.45.
It is also worth noting that HWM currently has a PEG ratio of 2.82. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Aerospace - Defense industry had an average PEG ratio of 2 as trading concluded yesterday.
The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 53, putting it in the top 22% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Howmet (HWM) Falls More Steeply Than Broader Market: What Investors Need to Know
Howmet (HWM - Free Report) closed the most recent trading day at $176.22, moving -5.32% from the previous trading session. This move lagged the S&P 500's daily loss of 0.11%. Meanwhile, the Dow gained 0.91%, and the Nasdaq, a tech-heavy index, lost 0.82%.
Coming into today, shares of the maker of engineered products for the aerospace and other industries had gained 7.81% in the past month. In that same time, the Aerospace sector gained 5.27%, while the S&P 500 gained 5.17%.
The investment community will be closely monitoring the performance of Howmet in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.87, marking a 29.85% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $1.99 billion, indicating a 5.92% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.47 per share and revenue of $8.06 billion. These totals would mark changes of +29% and +8.48%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Howmet. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.33% higher. Howmet is currently sporting a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Howmet has a Forward P/E ratio of 53.7 right now. This valuation marks a premium compared to its industry average Forward P/E of 24.45.
It is also worth noting that HWM currently has a PEG ratio of 2.82. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Aerospace - Defense industry had an average PEG ratio of 2 as trading concluded yesterday.
The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 53, putting it in the top 22% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.