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Howmet (HWM) Falls More Steeply Than Broader Market: What Investors Need to Know
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Howmet (HWM - Free Report) ended the recent trading session at $273.14, demonstrating a -1.06% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.01% for the day. On the other hand, the Dow registered a gain of 0.14%, and the technology-centric Nasdaq decreased by 0.46%.
The maker of engineered products for the aerospace and other industries's stock has climbed by 6.99% in the past month, exceeding the Aerospace sector's gain of 2.96% and the S&P 500's loss of 1.4%.
The investment community will be paying close attention to the earnings performance of Howmet in its upcoming release. The company is expected to report EPS of $1.24, up 36.26% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $2.42 billion, showing a 17.68% escalation compared to the year-ago quarter.
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. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Howmet is currently sporting a Zacks Rank of #2 (Buy).
Investors should also note Howmet's current valuation metrics, including its Forward P/E ratio of 55.63. Its industry sports an average Forward P/E of 24.86, so one might conclude that Howmet is trading at a premium comparatively.
Investors should also note that HWM has a PEG ratio of 2.22 right now. 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 1.49.
The Aerospace - Defense industry is part of the Aerospace sector. Currently, this industry holds a Zacks Industry Rank of 102, positioning it in the top 42% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
View the Zacks #1 Rank List
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Howmet (HWM) Falls More Steeply Than Broader Market: What Investors Need to Know
Howmet (HWM - Free Report) ended the recent trading session at $273.14, demonstrating a -1.06% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.01% for the day. On the other hand, the Dow registered a gain of 0.14%, and the technology-centric Nasdaq decreased by 0.46%.
The maker of engineered products for the aerospace and other industries's stock has climbed by 6.99% in the past month, exceeding the Aerospace sector's gain of 2.96% and the S&P 500's loss of 1.4%.
The investment community will be paying close attention to the earnings performance of Howmet in its upcoming release. The company is expected to report EPS of $1.24, up 36.26% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $2.42 billion, showing a 17.68% escalation compared to the year-ago quarter.
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. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Howmet is currently sporting a Zacks Rank of #2 (Buy).
Investors should also note Howmet's current valuation metrics, including its Forward P/E ratio of 55.63. Its industry sports an average Forward P/E of 24.86, so one might conclude that Howmet is trading at a premium comparatively.
Investors should also note that HWM has a PEG ratio of 2.22 right now. 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 1.49.
The Aerospace - Defense industry is part of the Aerospace sector. Currently, this industry holds a Zacks Industry Rank of 102, positioning it in the top 42% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.