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Why Howmet (HWM) Dipped More Than Broader Market Today
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In the latest trading session, Howmet (HWM - Free Report) closed at $222.99, marking a -2.15% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.4%. At the same time, the Dow added 0.11%, and the tech-heavy Nasdaq lost 0.73%.
Shares of the maker of engineered products for the aerospace and other industries witnessed a loss of 13.19% over the previous month, trailing the performance of the Aerospace sector with its loss of 12.06%, and the S&P 500's loss of 7.34%.
Market participants will be closely following the financial results of Howmet in its upcoming release. In that report, analysts expect Howmet to post earnings of $1.1 per share. This would mark year-over-year growth of 27.91%. Alongside, our most recent consensus estimate is anticipating revenue of $2.24 billion, indicating a 15.3% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.56 per share and a revenue of $9.21 billion, representing changes of +20.95% and +11.57%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Howmet. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.44% higher. Howmet is currently a Zacks Rank #3 (Hold).
Investors should also note Howmet's current valuation metrics, including its Forward P/E ratio of 49.95. This indicates a premium in contrast to its industry's Forward P/E of 23.17.
It is also worth noting that HWM currently has a PEG ratio of 2.1. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Aerospace - Defense industry had an average PEG ratio of 2.03 as trading concluded yesterday.
The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 151, which puts it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow HWM in the coming trading sessions, be sure to utilize Zacks.com.
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Why Howmet (HWM) Dipped More Than Broader Market Today
In the latest trading session, Howmet (HWM - Free Report) closed at $222.99, marking a -2.15% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.4%. At the same time, the Dow added 0.11%, and the tech-heavy Nasdaq lost 0.73%.
Shares of the maker of engineered products for the aerospace and other industries witnessed a loss of 13.19% over the previous month, trailing the performance of the Aerospace sector with its loss of 12.06%, and the S&P 500's loss of 7.34%.
Market participants will be closely following the financial results of Howmet in its upcoming release. In that report, analysts expect Howmet to post earnings of $1.1 per share. This would mark year-over-year growth of 27.91%. Alongside, our most recent consensus estimate is anticipating revenue of $2.24 billion, indicating a 15.3% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.56 per share and a revenue of $9.21 billion, representing changes of +20.95% and +11.57%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Howmet. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.44% higher. Howmet is currently a Zacks Rank #3 (Hold).
Investors should also note Howmet's current valuation metrics, including its Forward P/E ratio of 49.95. This indicates a premium in contrast to its industry's Forward P/E of 23.17.
It is also worth noting that HWM currently has a PEG ratio of 2.1. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Aerospace - Defense industry had an average PEG ratio of 2.03 as trading concluded yesterday.
The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 151, which puts it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow HWM in the coming trading sessions, be sure to utilize Zacks.com.