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Should You Buy Howmet Aerospace After a 33% Rally in 6 Months?
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Key Takeaways
HWM shares have surged 33% in six months, beating the industry, S&P 500 and peers like Textron and RTX.
Commercial aerospace revenues rose 13% in Q4 2025 amid strong wide-body aircraft demand.
Defense aerospace revenues jumped 20% in Q4 on strong engine spares demand for F-35 and legacy fighters.
Howmet Aerospace Inc.’s (HWM - Free Report) investors have been experiencing some short-term gains from the stock. The company’s shares have surged 33% in the past six months, outpacing the industry and the S&P 500, which have returned 8.8% and 3.3%, respectively. The company has also outshone its peers like Textron Inc. (TXT - Free Report) and RTX Corporation (RTX - Free Report) , which have returned 13.4% and 30.9%, respectively, over the same time frame.
HWM Outperforms the Industry, S&P 500 & Peers
Image Source: Zacks Investment Research
Closing at $251.65 in the last trading session, the stock is trading close to its 52-week high of $267.31 and significantly higher than its 52-week low of $105.04. It is trading above both its 50-day and 200-day moving averages, indicating solid upward momentum and confidence in the company's long-term prospects.
HWM Stock’s 50-Day & 200-Day Moving Averages
Image Source: Zacks Investment Research
Let’s take a look at HWM’s fundamentals to better analyze how to play the stock.
What’s Behind HWM Stock’s Momentum?
Strong momentum in Howmet Aerospace’s commercial aerospace market continues to drive its overall growth. Rising global air passenger traffic has boosted demand for wide-body aircraft, resulting in higher OEM spending and steadily increasing demand for the aircraft parts and products supplied by the company.
Revenues from the commercial aerospace market increased 13% year over year in the fourth quarter of 2025, which constituted 53% of its business. Also, in the first, second and third quarters, revenues from the market increased 9%, 8% and 15% year over year, respectively. The sustained strength was attributed to new, more fuel-efficient aircraft with reduced carbon emissions and increased spare demand for engines. The Boeing Company (BA - Free Report) is also anticipated to witness a gradual production recovery, particularly in the Boeing 737 MAX aircraft, which is expected to boost demand for HWM’s products in the market.
The defense side of the aerospace market has also been witnessing positive momentum driven by steady government support. The company has been witnessing robust orders for engine spares for the F-35 program and spares for legacy fighters like the F-15 and the F-16. In the fourth quarter, revenues from the defense aerospace market surged 20% year over year, constituting 17% of the company’s revenues. Also, in the first, second and third quarters, revenues from this market increased 19%, 21% and 24% year over year, respectively.
The company’s measures to reward shareholders are encouraging. In 2025, HWM paid dividends of $181 million and repurchased shares worth $700 million. In August 2025, the company hiked its dividend by 20% to 12 cents per share (annually: 48 cents), marking its second dividend hike in 2025. Also, in July 2024, its board approved an increase in the share repurchase program by $2 billion to $2.487 billion of its common stock. As of Feb. 6, 2025, HWM’s total share repurchase authorization available was $1.35 billion.
Howmet Aerospace operates in the aerospace and defense markets, which include major industry players like Textron and RTX Corp.
HWM’s Estimate Revisions
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HWM’s bottom line for 2026 has increased 3.2% in the past 60 days.
Valuation
Image Source: Zacks Investment Research
Howmet Aerospace is trading at a forward 12-month price-to-earnings (P/E) ratio of 53.20X, much higher than the industry average of 33.05X. This elevated valuation could make the stock vulnerable to further pullbacks if market sentiment sours.
In comparison with HWM’s valuation, its peers, Textron and RTX Corp., are trading cheaper. TXT and RTX are currently trading at 29.85X and 12.58X, respectively.
Conclusion
Strength across both the commercial and defense aerospace markets, driven by solid aircraft build rates, strong engine spare demand and elevated defense spending, positions Howmet Aerospace well for sustained growth in the coming quarters. Supported by a healthy liquidity position, the company’s shareholder-friendly initiatives further enhance its investment appeal.
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Should You Buy Howmet Aerospace After a 33% Rally in 6 Months?
Key Takeaways
Howmet Aerospace Inc.’s (HWM - Free Report) investors have been experiencing some short-term gains from the stock. The company’s shares have surged 33% in the past six months, outpacing the industry and the S&P 500, which have returned 8.8% and 3.3%, respectively. The company has also outshone its peers like Textron Inc. (TXT - Free Report) and RTX Corporation (RTX - Free Report) , which have returned 13.4% and 30.9%, respectively, over the same time frame.
HWM Outperforms the Industry, S&P 500 & Peers
Image Source: Zacks Investment Research
Closing at $251.65 in the last trading session, the stock is trading close to its 52-week high of $267.31 and significantly higher than its 52-week low of $105.04. It is trading above both its 50-day and 200-day moving averages, indicating solid upward momentum and confidence in the company's long-term prospects.
HWM Stock’s 50-Day & 200-Day Moving Averages
Image Source: Zacks Investment Research
Let’s take a look at HWM’s fundamentals to better analyze how to play the stock.
What’s Behind HWM Stock’s Momentum?
Strong momentum in Howmet Aerospace’s commercial aerospace market continues to drive its overall growth. Rising global air passenger traffic has boosted demand for wide-body aircraft, resulting in higher OEM spending and steadily increasing demand for the aircraft parts and products supplied by the company.
Revenues from the commercial aerospace market increased 13% year over year in the fourth quarter of 2025, which constituted 53% of its business. Also, in the first, second and third quarters, revenues from the market increased 9%, 8% and 15% year over year, respectively. The sustained strength was attributed to new, more fuel-efficient aircraft with reduced carbon emissions and increased spare demand for engines. The Boeing Company (BA - Free Report) is also anticipated to witness a gradual production recovery, particularly in the Boeing 737 MAX aircraft, which is expected to boost demand for HWM’s products in the market.
The defense side of the aerospace market has also been witnessing positive momentum driven by steady government support. The company has been witnessing robust orders for engine spares for the F-35 program and spares for legacy fighters like the F-15 and the F-16. In the fourth quarter, revenues from the defense aerospace market surged 20% year over year, constituting 17% of the company’s revenues. Also, in the first, second and third quarters, revenues from this market increased 19%, 21% and 24% year over year, respectively.
The company’s measures to reward shareholders are encouraging. In 2025, HWM paid dividends of $181 million and repurchased shares worth $700 million. In August 2025, the company hiked its dividend by 20% to 12 cents per share (annually: 48 cents), marking its second dividend hike in 2025. Also, in July 2024, its board approved an increase in the share repurchase program by $2 billion to $2.487 billion of its common stock. As of Feb. 6, 2025, HWM’s total share repurchase authorization available was $1.35 billion.
Howmet Aerospace operates in the aerospace and defense markets, which include major industry players like Textron and RTX Corp.
HWM’s Estimate Revisions
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HWM’s bottom line for 2026 has increased 3.2% in the past 60 days.
Valuation
Image Source: Zacks Investment Research
Howmet Aerospace is trading at a forward 12-month price-to-earnings (P/E) ratio of 53.20X, much higher than the industry average of 33.05X. This elevated valuation could make the stock vulnerable to further pullbacks if market sentiment sours.
In comparison with HWM’s valuation, its peers, Textron and RTX Corp., are trading cheaper. TXT and RTX are currently trading at 29.85X and 12.58X, respectively.
Conclusion
Strength across both the commercial and defense aerospace markets, driven by solid aircraft build rates, strong engine spare demand and elevated defense spending, positions Howmet Aerospace well for sustained growth in the coming quarters. Supported by a healthy liquidity position, the company’s shareholder-friendly initiatives further enhance its investment appeal.
Despite trading at a premium valuation, favorable analyst sentiment and strong growth prospects suggest that investors may consider this Zacks Rank #2 (Buy) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.