In the latest close session, Howmet (HWM) was up +2.25% at $196.23. The stock's performance was ahead of the S&P 500's daily gain of 0.41%. Meanwhile, the Dow experienced a rise of 0.18%, and the technology-dominated Nasdaq saw an increase of 0.31%.
Shares of the maker of engineered products for the aerospace and other industries have appreciated by 10.23% over the course of the past month, outperforming the Aerospace sector's gain of 3.07%, and the S&P 500's gain of 3.15%.
The investment community will be closely monitoring the performance of Howmet in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.9, marking a 26.76% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $2.04 billion, up 11.3% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.57 per share and revenue of $8.12 billion, indicating changes of +32.71% and +9.35%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Howmet should also be noted by investors. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Howmet is currently a Zacks Rank #2 (Buy).
In terms of valuation, Howmet is presently being traded at a Forward P/E ratio of 53.71. For comparison, its industry has an average Forward P/E of 25.5, which means Howmet is trading at a premium to the group.
Also, we should mention that HWM has a PEG ratio of 2.49. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Aerospace - Defense stocks are, on average, holding a PEG ratio of 2.19 based on yesterday's closing prices.
The Aerospace - Defense industry is part of the Aerospace sector. With its current Zacks Industry Rank of 158, this industry ranks in the bottom 37% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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