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Howmet (HWM) Sees a More Significant Dip Than Broader Market: Some Facts to Know
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Howmet (HWM - Free Report) closed at $275.13 in the latest trading session, marking a -1.87% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 1.44% for the day. Meanwhile, the Dow experienced a drop of 0.09%, and the technology-dominated Nasdaq saw a decrease of 2.22%.
Coming into today, shares of the maker of engineered products for the aerospace and other industries had gained 9.28% in the past month. In that same time, the Aerospace sector gained 2.86%, while the S&P 500 gained 0.08%.
The investment community will be closely monitoring the performance of Howmet in its forthcoming earnings report. On that day, Howmet is projected to report earnings of $1.24 per share, which would represent year-over-year growth of 36.26%. In the meantime, our current consensus estimate forecasts the revenue to be $2.42 billion, indicating a 17.68% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.96 per share and a revenue of $9.72 billion, signifying shifts of +31.56% and +17.8%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Howmet. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 past month, the Zacks Consensus EPS estimate has remained steady. Howmet presently features a Zacks Rank of #2 (Buy).
From a valuation perspective, Howmet is currently exchanging hands at a Forward P/E ratio of 56.5. This indicates a premium in contrast to its industry's Forward P/E of 24.74.
Meanwhile, HWM's PEG ratio is currently 2.26. 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 1.47 at the close of the market yesterday.
The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 104, putting 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.
To follow HWM in the coming trading sessions, be sure to utilize Zacks.com.
View the Zacks #1 Rank List
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Howmet (HWM) Sees a More Significant Dip Than Broader Market: Some Facts to Know
Howmet (HWM - Free Report) closed at $275.13 in the latest trading session, marking a -1.87% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 1.44% for the day. Meanwhile, the Dow experienced a drop of 0.09%, and the technology-dominated Nasdaq saw a decrease of 2.22%.
Coming into today, shares of the maker of engineered products for the aerospace and other industries had gained 9.28% in the past month. In that same time, the Aerospace sector gained 2.86%, while the S&P 500 gained 0.08%.
The investment community will be closely monitoring the performance of Howmet in its forthcoming earnings report. On that day, Howmet is projected to report earnings of $1.24 per share, which would represent year-over-year growth of 36.26%. In the meantime, our current consensus estimate forecasts the revenue to be $2.42 billion, indicating a 17.68% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.96 per share and a revenue of $9.72 billion, signifying shifts of +31.56% and +17.8%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Howmet. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 past month, the Zacks Consensus EPS estimate has remained steady. Howmet presently features a Zacks Rank of #2 (Buy).
From a valuation perspective, Howmet is currently exchanging hands at a Forward P/E ratio of 56.5. This indicates a premium in contrast to its industry's Forward P/E of 24.74.
Meanwhile, HWM's PEG ratio is currently 2.26. 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 1.47 at the close of the market yesterday.
The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 104, putting 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.
To follow HWM in the coming trading sessions, be sure to utilize Zacks.com.