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Howmet (HWM) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Howmet (HWM - Free Report) closed at $224.26, marking a +1.82% move from the previous day. This change outpaced the S&P 500's 0.26% gain on the day. Elsewhere, the Dow saw an upswing of 0.6%, while the tech-heavy Nasdaq appreciated by 0.25%.

The stock of maker of engineered products for the aerospace and other industries has risen by 15.2% in the past month, leading the Aerospace sector's gain of 10.62% and the S&P 500's gain of 1.57%.

Investors will be eagerly watching for the performance of Howmet in its upcoming earnings disclosure. The company is expected to report EPS of $0.96, up 29.73% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.13 billion, up 12.44% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.69 per share and a revenue of $8.21 billion, signifying shifts of +37.17% and 0%, respectively, from the last year.

Investors should also note any recent changes to analyst estimates for Howmet. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.02% increase. Howmet currently has a Zacks Rank of #3 (Hold).

In the context of valuation, Howmet is at present trading with a Forward P/E ratio of 49.89. For comparison, its industry has an average Forward P/E of 24.17, which means Howmet is trading at a premium to the group.

It is also worth noting that HWM currently has a PEG ratio of 2.09. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Aerospace - Defense industry had an average PEG ratio of 1.89.

The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 106, putting it in the top 44% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the 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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