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Howmet (HWM) Suffers a Larger Drop Than the General Market: Key Insights

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Howmet (HWM - Free Report) closed at $222.75 in the latest trading session, marking a -3.82% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.22% for the day. Elsewhere, the Dow saw a downswing of 0.66%, while the tech-heavy Nasdaq depreciated by 0.22%.

Shares of the maker of engineered products for the aerospace and other industries have appreciated by 0.03% over the course of the past month, outperforming the Aerospace sector's loss of 8.35%, and lagging the S&P 500's gain of 1.4%.

The investment community will be paying close attention to the earnings performance of Howmet in its upcoming release. The company is slated to reveal its earnings on October 29, 2026. The company's upcoming EPS is projected at $1.36, signifying a 43.16% increase 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.

Investors should also pay attention to any latest changes in analyst estimates for Howmet. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.11% rise in the Zacks Consensus EPS estimate. Right now, Howmet possesses a Zacks Rank of #2 (Buy).

In the context of valuation, Howmet is at present trading with a Forward P/E ratio of 43.44. This denotes a premium relative to the industry average Forward P/E of 21.54.

It's also important to note that HWM currently trades at a PEG ratio of 2.09. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Aerospace - Defense industry held an average PEG ratio of 1.66.

The Aerospace - Defense industry is part of the Aerospace sector. With its current Zacks Industry Rank of 102, this industry ranks in the top 42% of all industries, numbering over 250.

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.

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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