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Howmet (HWM) Exceeds Market Returns: Some Facts to Consider
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Howmet (HWM - Free Report) ended the recent trading session at $254.06, demonstrating a +1.62% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.62%. On the other hand, the Dow registered a gain of 0.58%, and the technology-centric Nasdaq increased by 0.83%.
Shares of the maker of engineered products for the aerospace and other industries witnessed a loss of 0.66% over the previous month, beating the performance of the Aerospace sector with its loss of 5.4%, and underperforming the S&P 500's gain of 0.8%.
The investment community will be paying close attention to the earnings performance of Howmet in its upcoming release. The company's earnings per share (EPS) are projected to be $1.11, reflecting a 29.07% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.24 billion, up 15.3% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.56 per share and a revenue of $9.24 billion, signifying shifts of +20.95% and +12%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Howmet. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 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).
Investors should also note Howmet's current valuation metrics, including its Forward P/E ratio of 54.79. This valuation marks a premium compared to its industry average Forward P/E of 24.18.
We can additionally observe that HWM currently boasts a PEG ratio of 2.31. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Aerospace - Defense industry stood at 2.05 at the close of the market yesterday.
The Aerospace - Defense industry is part of the Aerospace sector. Currently, this industry holds a Zacks Industry Rank of 169, positioning it in the bottom 31% of all 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Howmet (HWM) Exceeds Market Returns: Some Facts to Consider
Howmet (HWM - Free Report) ended the recent trading session at $254.06, demonstrating a +1.62% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.62%. On the other hand, the Dow registered a gain of 0.58%, and the technology-centric Nasdaq increased by 0.83%.
Shares of the maker of engineered products for the aerospace and other industries witnessed a loss of 0.66% over the previous month, beating the performance of the Aerospace sector with its loss of 5.4%, and underperforming the S&P 500's gain of 0.8%.
The investment community will be paying close attention to the earnings performance of Howmet in its upcoming release. The company's earnings per share (EPS) are projected to be $1.11, reflecting a 29.07% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.24 billion, up 15.3% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.56 per share and a revenue of $9.24 billion, signifying shifts of +20.95% and +12%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Howmet. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 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).
Investors should also note Howmet's current valuation metrics, including its Forward P/E ratio of 54.79. This valuation marks a premium compared to its industry average Forward P/E of 24.18.
We can additionally observe that HWM currently boasts a PEG ratio of 2.31. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Aerospace - Defense industry stood at 2.05 at the close of the market yesterday.
The Aerospace - Defense industry is part of the Aerospace sector. Currently, this industry holds a Zacks Industry Rank of 169, positioning it in the bottom 31% of all 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.