Howmet (HWM) ended the recent trading session at $186.40, demonstrating a +1.67% change from the preceding day's closing price. The stock outpaced the S&P 500's daily gain of 0.78%. Elsewhere, the Dow saw an upswing of 1.14%, while the tech-heavy Nasdaq appreciated by 0.61%.
Shares of the maker of engineered products for the aerospace and other industries have appreciated by 3.83% over the course of the past month, underperforming the Aerospace sector's gain of 4.46%, and the S&P 500's gain of 5.88%.
Market participants will be closely following the financial results of Howmet in its upcoming release. The company plans to announce its earnings on July 31, 2025. It is anticipated that the company will report an EPS of $0.87, marking a 29.85% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $1.99 billion, indicating a 5.78% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.47 per share and revenue of $8.08 billion, which would represent changes of +29% and +8.74%, respectively, from the prior year.
Any recent changes to analyst estimates for Howmet should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 0.52% higher. As of now, Howmet holds a Zacks Rank of #3 (Hold).
Digging into valuation, Howmet currently has a Forward P/E ratio of 52.8. For comparison, its industry has an average Forward P/E of 25.16, which means Howmet is trading at a premium to the group.
It's also important to note that HWM currently trades at a PEG ratio of 2.71. 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 average PEG ratio for the Aerospace - Defense industry stood at 2.06 at the close of the market yesterday.
The Aerospace - Defense industry is part of the Aerospace sector. With its current Zacks Industry Rank of 93, this industry ranks in the top 38% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the 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.
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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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