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Howmet (HWM - Free Report) ended the recent trading session at $270.44, demonstrating a +2.18% change from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 1.65%. Meanwhile, the Dow experienced a rise of 0.92%, and the technology-dominated Nasdaq saw an increase of 3.07%.
Prior to today's trading, shares of the maker of engineered products for the aerospace and other industries had gained 1.66% lagged the Aerospace sector's gain of 2.97% and outpaced the S&P 500's gain of 0.48%.
Market participants will be closely following the financial results of Howmet in its upcoming release. The company's earnings per share (EPS) are projected to be $1.21, reflecting a 32.97% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.42 billion, up 17.68% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $4.96 per share and a revenue of $9.72 billion, demonstrating changes of +31.56% and +17.8%, respectively, from the preceding year.
Any recent changes to analyst estimates for Howmet should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.48% increase. At present, Howmet boasts a Zacks Rank of #2 (Buy).
Looking at its valuation, Howmet is holding a Forward P/E ratio of 53.34. This denotes a premium relative to the industry average Forward P/E of 22.85.
One should further note that HWM currently holds a PEG ratio of 2.13. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Aerospace - Defense industry stood at 1.55 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 104, positioning it in the top 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
View the Zacks #1 Rank List
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Why Howmet (HWM) Outpaced the Stock Market Today
Howmet (HWM - Free Report) ended the recent trading session at $270.44, demonstrating a +2.18% change from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 1.65%. Meanwhile, the Dow experienced a rise of 0.92%, and the technology-dominated Nasdaq saw an increase of 3.07%.
Prior to today's trading, shares of the maker of engineered products for the aerospace and other industries had gained 1.66% lagged the Aerospace sector's gain of 2.97% and outpaced the S&P 500's gain of 0.48%.
Market participants will be closely following the financial results of Howmet in its upcoming release. The company's earnings per share (EPS) are projected to be $1.21, reflecting a 32.97% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.42 billion, up 17.68% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $4.96 per share and a revenue of $9.72 billion, demonstrating changes of +31.56% and +17.8%, respectively, from the preceding year.
Any recent changes to analyst estimates for Howmet should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.48% increase. At present, Howmet boasts a Zacks Rank of #2 (Buy).
Looking at its valuation, Howmet is holding a Forward P/E ratio of 53.34. This denotes a premium relative to the industry average Forward P/E of 22.85.
One should further note that HWM currently holds a PEG ratio of 2.13. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Aerospace - Defense industry stood at 1.55 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 104, positioning it in the top 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.