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Howmet (HWM) Stock Sinks As Market Gains: Here's Why
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Howmet (HWM - Free Report) closed at $232.68 in the latest trading session, marking a -2.66% move from the prior day. This move lagged the S&P 500's daily gain of 0.11%. Elsewhere, the Dow saw a downswing of 0.13%, while the tech-heavy Nasdaq appreciated by 0.18%.
Shares of the maker of engineered products for the aerospace and other industries have depreciated by 8.09% over the course of the past month, outperforming the Aerospace sector's loss of 9.04%, and lagging the S&P 500's loss of 4.28%.
Investors will be eagerly watching for the performance of Howmet in its upcoming earnings disclosure. 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.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.56 per share and revenue of $9.24 billion. These totals would mark changes of +20.95% and +12%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Howmet. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 0.44% rise in the Zacks Consensus EPS estimate. Howmet is currently a Zacks Rank #3 (Hold).
In terms of valuation, Howmet is presently being traded at a Forward P/E ratio of 52.39. This indicates a premium in contrast to its industry's Forward P/E of 23.47.
It's also important to note that HWM currently trades at a PEG ratio of 2.21. 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 2.05.
The Aerospace - Defense industry is part of the Aerospace sector. At present, this industry carries a Zacks Industry Rank of 152, placing it within the bottom 38% of over 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Howmet (HWM) Stock Sinks As Market Gains: Here's Why
Howmet (HWM - Free Report) closed at $232.68 in the latest trading session, marking a -2.66% move from the prior day. This move lagged the S&P 500's daily gain of 0.11%. Elsewhere, the Dow saw a downswing of 0.13%, while the tech-heavy Nasdaq appreciated by 0.18%.
Shares of the maker of engineered products for the aerospace and other industries have depreciated by 8.09% over the course of the past month, outperforming the Aerospace sector's loss of 9.04%, and lagging the S&P 500's loss of 4.28%.
Investors will be eagerly watching for the performance of Howmet in its upcoming earnings disclosure. 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.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.56 per share and revenue of $9.24 billion. These totals would mark changes of +20.95% and +12%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Howmet. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 0.44% rise in the Zacks Consensus EPS estimate. Howmet is currently a Zacks Rank #3 (Hold).
In terms of valuation, Howmet is presently being traded at a Forward P/E ratio of 52.39. This indicates a premium in contrast to its industry's Forward P/E of 23.47.
It's also important to note that HWM currently trades at a PEG ratio of 2.21. 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 2.05.
The Aerospace - Defense industry is part of the Aerospace sector. At present, this industry carries a Zacks Industry Rank of 152, placing it within the bottom 38% of over 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.