Increased Demand Sent Howmet Aerospace (HWM) Higher in Q2

Fidelity Investments, an investment management company, recently released its “Fidelity Growth Strategies Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Fidelity Growth Strategies Fund is a diversified domestic equity strategy with a focus on mid-cap growth investments. The fund focuses on investing in high-quality companies that demonstrate consistent growth and generate positive free cash flow. The fund’s Retail Class shares returned 22.74% in the second quarter, underperforming the 18.20% return of the benchmark Russell Midcap Growth Index. U.S. mid-cap growth stocks saw strong gains in Q2, bouncing back from a brief decline in early April following President Trump's tariff announcement. In addition, you can check the fund’s top 5 holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Fidelity Growth Strategies Fund highlighted stocks such as Howmet Aerospace Inc. (NYSE:HWM). Howmet Aerospace Inc. (NYSE:HWM) provides advanced engineered solutions for the aerospace and transportation industries. The one-month return of Howmet Aerospace Inc. (NYSE:HWM) was 9.05%, and its shares gained 91.36% of their value over the last 52 weeks. On September 25, 2025, Howmet Aerospace Inc. (NYSE:HWM) stock closed at $189.85 per share, with a market capitalization of $76.53 billion.

Fidelity Growth Strategies Fund stated the following regarding Howmet Aerospace Inc. (NYSE:HWM) in its second quarter 2025 investor letter:

"An outsized position in Howmet Aerospace Inc. (NYSE:HWM) (+45%) helped, too. The maker of jet engine components has been riding a post-COVID recovery wave in air travel amid surging demand for its products. After achieving record financial results in 2024, in May the company reported more good news for Q1 of 2025, with record revenue, an all-time high profit and $125 million deployed for stock repurchases. We added substantially to the stake, and it was our second-biggest holding and overweight at the end of the quarter."

Howmet Aerospace Inc. (NYSE:HWM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 57 hedge fund portfolios held Howmet Aerospace Inc. (NYSE:HWM) at the end of the second quarter, which was 56 in the previous quarter. While we acknowledge the potential of Howmet Aerospace Inc. (NYSE:HWM) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Howmet Aerospace Inc. (NYSE:HWM) and shared the list of best defense stocks to buy. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.