In the latest trading session, Howmet (HWM) closed at $191.08, marking a -1.93% move from the previous day. This move lagged the S&P 500's daily gain of 0.06%. Meanwhile, the Dow gained 0.17%, and the Nasdaq, a tech-heavy index, added 0.39%.
Coming into today, shares of the maker of engineered products for the aerospace and other industries had gained 11.67% in the past month. In that same time, the Aerospace sector gained 4.81%, while the S&P 500 gained 3.94%.
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 October 30, 2025. The company is forecasted to report an EPS of $0.9, showcasing a 26.76% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $2.04 billion, indicating a 11.3% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.57 per share and a revenue of $8.12 billion, signifying shifts of +32.71% and +9.35%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Howmet. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Howmet presently features a Zacks Rank of #2 (Buy).
Looking at valuation, Howmet is presently trading at a Forward P/E ratio of 54.53. For comparison, its industry has an average Forward P/E of 26.16, which means Howmet is trading at a premium to the group.
It is also worth noting that HWM currently has a PEG ratio of 2.53. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Aerospace - Defense industry had an average PEG ratio of 2.22 as trading concluded yesterday.
The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 138, which puts it in the bottom 45% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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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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