Howmet (HWM) closed at $188.83 in the latest trading session, marking a +2.46% move from the prior day. The stock's change was more than the S&P 500's daily gain of 0.54%. At the same time, the Dow added 0.52%, and the tech-heavy Nasdaq gained 0.74%.
Shares of the maker of engineered products for the aerospace and other industries witnessed a gain of 8.27% over the previous month, beating the performance of the Aerospace sector with its gain of 6.63%, and the S&P 500's gain of 4.2%.
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 July 31, 2025. The company is predicted to post an EPS of $0.87, indicating a 29.85% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.99 billion, indicating a 5.78% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.47 per share and revenue of $8.08 billion, indicating changes of +29% and +8.74%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Howmet. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 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. The Zacks Consensus EPS estimate has moved 0.52% higher within the past month. Howmet is holding a Zacks Rank of #2 (Buy) right now.
With respect to valuation, Howmet is currently being traded at a Forward P/E ratio of 53.08. This signifies a premium in comparison to the average Forward P/E of 25.16 for its industry.
Meanwhile, HWM's PEG ratio is currently 2.73. 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. HWM's industry had an average PEG ratio of 2.05 as of yesterday's close.
The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 87, which puts it in the top 36% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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Howmet Aerospace Inc. (HWM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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