For those looking to find strong Aerospace stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Howmet (HWM) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.Howmet is a member of our Aerospace group, which includes 53 different companies and currently sits at #3 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks with ...

Defense and aerospace stocks have had a fairly strong first quarter of 2025. As of March 31, the benchmark iShares U.S. Aerospace & Defense ETF BATS: ITA has climbed 17% in the last year and nearly 6% year-to-date (YTD), beating the S&P 500 over both timeframes given the recent correction. But some individual names within the industry have outshone the benchmark, leading the way amid speculation that the Trump administration will lead to favorable regulatory and spending trends for defense. Howmet Aerospace ...

Howmet (HWM) closed at $132.43 in the latest trading session, marking a -1.27% move from the prior day. This change lagged the S&P 500's daily loss of 0.33%. Meanwhile, the Dow experienced a drop of 0.37%, and the technology-dominated Nasdaq saw a decrease of 0.53%.Shares of the maker of engineered products for the aerospace and other industries witnessed a gain of 1.64% over the previous month, trailing the performance of the Aerospace sector with its gain of 4.54% and outperforming the S&P 500's loss of 4 ...

Group 1 - Howmet Aerospace is positioned for stability and consistent performance, with shares more than doubling in 2024 [1] - The company manufactures fasteners and engineered products for major industrial clients like Boeing and Airbus, benefiting from the demand for newer, fuel-efficient aircraft [2] - Spare part sales are a significant and profitable segment, driven by airlines' reliance on existing fleets due to Boeing's production challenges [3] Group 2 - In 2024, Howmet achieved a 12% year-over-year revenue growth and generated nearly $1 billion in free cash flow, allowing for stock repurchases, dividends, and debt reduction [4] - The company invests in R&D for lightweight materials and serves energy-generation markets, which may see increased demand from AI data centers [5] - Despite facing cyclical industry challenges and supply chain disruptions, Howmet's strong management and historical resilience position it well for future stability [6][7]

Howmet Aerospace (NYSE: HWM ) may be positioned to participate in multiple megatrends in the coming years, realizing durable growth as the commercial aerospace improves as well as strength in the growing demand for industrial gas turbines to support theMichael Del Monte is a buy-side equity analyst with over 5 years of industry experience. Prior to working in the investment management industry, Michael spent over a decade in professional services working in industries that range from O&G, OFS, Midstream, In ...

Group 1 - Howmet Aerospace Inc. (HWM) has seen a stock price increase of 33.7% over the past six months, significantly outperforming the S&P 500's growth of 0.7% and the aerospace defense industry's decline of 8.5% [1][2] - The stock closed at $126.51, trading below its 52-week high of $140.55 and above its 52-week low of $62.80, indicating solid upward momentum and price stability [3] - The company is benefiting from strong momentum in the commercial aerospace market, with a 12.9% year-over-year revenue increase in this segment, which constitutes 53% of its business [6][7] Group 2 - The defense aerospace market is also performing well, with a 22% year-over-year revenue increase in the fourth quarter, making up 16% of the company's business [8] - The U.S. Senate Committee on Appropriations approved a fiscal year 2025 Defense Appropriations Act providing $852.2 billion in funding, a 3.3% increase from fiscal 2024, which supports Howmet's growth in defense contracts [9] - Howmet expects to generate revenues between $7.93 billion and $8.13 billion in 2025, reflecting an 8% year-over-year growth at the midpoint [10] Group 3 - The company has a strong liquidity position, with cash equivalents and receivables totaling $564 million and a free cash flow of $977 million in 2024 [10] - In 2024, Howmet paid $109 million in dividends and repurchased $500 million in shares, with a 25% dividend increase announced for January 2025 [11] - The Zacks Consensus Estimate for Howmet's 2025 earnings has risen by 3.2% to $3.27 per share, indicating a year-over-year growth of 21.6% [12] Group 4 - Despite positive growth prospects, Howmet's stock is trading at a forward P/E ratio of 37.00X, higher than the industry average of 22.31X, which may pose a valuation concern [13] - The company's strong performance in both commercial and defense aerospace markets positions it favorably for future growth, supported by a solid liquidity position and shareholder-friendly policies [15][16]

Company Performance - Howmet (HWM) closed at $124.40, reflecting a -0.07% change from the previous day, underperforming the S&P 500's gain of 0.55% [1] - Over the past month, Howmet's shares have decreased by 3.5%, which is worse than the Aerospace sector's decline of 3.12% and better than the S&P 500's loss of 5.56% [1] Earnings Expectations - Howmet is expected to report an EPS of $0.77, representing a 35.09% increase from the same quarter last year [2] - Revenue is anticipated to reach $1.93 billion, indicating a 5.87% rise compared to the prior year [2] Annual Projections - For the annual period, earnings are projected at $3.23 per share and revenue at $8.06 billion, reflecting increases of +20.07% and +8.54% respectively from the previous year [3] - Recent changes to analyst estimates for Howmet may indicate a positive outlook for the company's business trends [3] Valuation Metrics - Howmet has a Forward P/E ratio of 38.54, which is a premium compared to the industry's average Forward P/E of 18.63 [6] - The company has a PEG ratio of 1.74, while the Aerospace - Defense industry average PEG ratio is 1.81 [6] Industry Ranking - The Aerospace - Defense industry, part of the Aerospace sector, has a Zacks Industry Rank of 136, placing it in the bottom 46% of over 250 industries [7] - The Zacks Industry Rank measures the strength of industry groups based on the average Zacks Rank of individual stocks, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [7]

Core Viewpoint - The article discusses the reliability of Wall Street analysts' recommendations, particularly focusing on Howmet (HWM), and emphasizes the importance of using these recommendations in conjunction with other research tools like the Zacks Rank [1][4]. Group 1: Brokerage Recommendations for Howmet - Howmet has an average brokerage recommendation (ABR) of 1.43, indicating a consensus between Strong Buy and Buy, based on 21 brokerage firms [2]. - Out of the 21 recommendations, 17 are Strong Buy and 1 is Buy, which accounts for 81% and 4.8% of all recommendations respectively [2]. Group 2: Limitations of Brokerage Recommendations - Solely relying on brokerage recommendations may not be advisable, as studies show they often fail to guide investors towards stocks with the highest potential for price appreciation [4]. - Analysts from brokerage firms tend to exhibit a strong positive bias in their ratings due to vested interests, with five "Strong Buy" recommendations for every "Strong Sell" [5][9]. Group 3: Zacks Rank as a Reliable Indicator - The Zacks Rank, which classifies stocks from 1 (Strong Buy) to 5 (Strong Sell), is presented as a more reliable indicator of near-term price performance, driven by earnings estimate revisions [7][10]. - The Zacks Rank is updated more frequently than the ABR, reflecting timely changes in analysts' earnings estimates, making it a better tool for predicting future price movements [11]. Group 4: Current Earnings Estimates for Howmet - The Zacks Consensus Estimate for Howmet has increased by 3% over the past month to $3.23, indicating growing optimism among analysts regarding the company's earnings prospects [12]. - This increase in consensus estimates has contributed to a Zacks Rank of 2 (Buy) for Howmet, suggesting that the Buy-equivalent ABR may serve as a useful guide for investors [13].

Howmet Aerospace Inc. (HWM) is poised to benefit from solid momentum across its businesses, focus on operational excellence and healthy liquidity position. The company remains focused on investing in growth opportunities and strengthening its long-term market position.HWM, which has a market capitalization of $51.4 billion, currently carries a Zacks Rank #2 (Buy). Let’s delve into the factors that have been aiding the firm for a while now.End-Market Strength: Howmet is witnessing persistent strength in the ...

Core Insights - Howmet Aerospace reported its fourth quarter and full year results in February, with the stock climbing 16.7% compared to a flat market since the buy rating was reiterated [1] - The investing group, The Aerospace Forum, focuses on discovering investment opportunities in the aerospace, defense, and airline industry, leveraging data-informed analysis [1] Company Performance - The stock performance of Howmet Aerospace has shown a significant increase of 16.7% following the positive earnings report [1] - The report indicates that the company is positioned within a complex industry that has significant growth prospects [1] Analyst Background - The analysis is provided by an individual with a background in aerospace engineering, enhancing the understanding of industry developments and their potential impact on investment theses [1] - The investing group offers direct access to data analytics monitors, which supports informed investment decisions [1]