The most recent trading session ended with Howmet (HWM) standing at $114.62, reflecting a -1% shift from the previouse trading day's closing. This change was narrower than the S&P 500's daily loss of 1.57%. At the same time, the Dow lost 0.84%, and the tech-heavy Nasdaq lost 2.15%.
Shares of the maker of engineered products for the aerospace and other industries have depreciated by 5.34% over the course of the past month, outperforming the Aerospace sector's loss of 10.45% and the S&P 500's loss of 12.16%.
The investment community will be paying close attention to the earnings performance of Howmet in its upcoming release. It is anticipated that the company will report an EPS of $0.77, marking a 35.09% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $1.93 billion, indicating a 5.87% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.26 per share and a revenue of $8.06 billion, indicating changes of +21.19% and +8.54%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Howmet. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.3% decrease. Howmet currently has a Zacks Rank of #3 (Hold).
Investors should also note Howmet's current valuation metrics, including its Forward P/E ratio of 35.53. This indicates a premium in contrast to its industry's Forward P/E of 17.76.
Meanwhile, HWM's PEG ratio is currently 2.08. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Aerospace - Defense industry had an average PEG ratio of 1.84 as trading concluded yesterday.
The Aerospace - Defense industry is part of the Aerospace sector. Currently, this industry holds a Zacks Industry Rank of 163, positioning it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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