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Is Howmet Aerospace (HWM) Outperforming Other Aerospace Stocks This Year?

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The Aerospace group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Howmet (HWM - Free Report) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Aerospace sector should help us answer this question.

Howmet is a member of our Aerospace group, which includes 58 different companies and currently sits at #6 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Howmet is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for HWM's full-year earnings has moved 3% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the latest available data, HWM has gained about 58.4% so far this year. In comparison, Aerospace companies have returned an average of 25.7%. This means that Howmet is outperforming the sector as a whole this year.

Another stock in the Aerospace sector, MTU Aero Engines AG (MTUAY - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 33.5%.

For MTU Aero Engines AG, the consensus EPS estimate for the current year has increased 8.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Howmet is a member of the Aerospace - Defense industry, which includes 24 individual companies and currently sits at #71 in the Zacks Industry Rank. On average, this group has gained an average of 26.9% so far this year, meaning that HWM is performing better in terms of year-to-date returns. MTU Aero Engines AG is also part of the same industry.

Going forward, investors interested in Aerospace stocks should continue to pay close attention to Howmet and MTU Aero Engines AG as they could maintain their solid performance.


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