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Howmet (HWM - Free Report) closed the most recent trading day at $228.51, moving +1.03% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.2%. At the same time, the Dow added 0.04%, and the tech-heavy Nasdaq gained 0.04%.
The maker of engineered products for the aerospace and other industries's shares have seen a decrease of 10.59% over the last month, not keeping up with the Aerospace sector's loss of 8.19% and the S&P 500's loss of 0.35%.
The investment community will be paying close attention to the earnings performance of Howmet in its upcoming release. It is anticipated that the company will report an EPS of $1.36, marking a 43.16% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $2.59 billion, up 23.98% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.33 per share and a revenue of $10.12 billion, signifying shifts of +41.38% and +22.61%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 last 30 days, the Zacks Consensus EPS estimate has moved 0.11% higher. At present, Howmet boasts a Zacks Rank of #2 (Buy).
Looking at valuation, Howmet is presently trading at a Forward P/E ratio of 42.43. This valuation marks a premium compared to its industry average Forward P/E of 23.45.
We can also see that HWM currently has a PEG ratio of 2.04. 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 Aerospace - Defense was holding an average PEG ratio of 1.66 at yesterday's closing price.
The Aerospace - Defense industry is part of the Aerospace sector. With its current Zacks Industry Rank of 167, this industry ranks in the bottom 33% of all industries, numbering over 250.
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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
View the Zacks #1 Rank List
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Why Howmet (HWM) Outpaced the Stock Market Today
Howmet (HWM - Free Report) closed the most recent trading day at $228.51, moving +1.03% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.2%. At the same time, the Dow added 0.04%, and the tech-heavy Nasdaq gained 0.04%.
The maker of engineered products for the aerospace and other industries's shares have seen a decrease of 10.59% over the last month, not keeping up with the Aerospace sector's loss of 8.19% and the S&P 500's loss of 0.35%.
The investment community will be paying close attention to the earnings performance of Howmet in its upcoming release. It is anticipated that the company will report an EPS of $1.36, marking a 43.16% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $2.59 billion, up 23.98% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.33 per share and a revenue of $10.12 billion, signifying shifts of +41.38% and +22.61%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 last 30 days, the Zacks Consensus EPS estimate has moved 0.11% higher. At present, Howmet boasts a Zacks Rank of #2 (Buy).
Looking at valuation, Howmet is presently trading at a Forward P/E ratio of 42.43. This valuation marks a premium compared to its industry average Forward P/E of 23.45.
We can also see that HWM currently has a PEG ratio of 2.04. 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 Aerospace - Defense was holding an average PEG ratio of 1.66 at yesterday's closing price.
The Aerospace - Defense industry is part of the Aerospace sector. With its current Zacks Industry Rank of 167, this industry ranks in the bottom 33% of all industries, numbering over 250.
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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.