Howmet (HWM) closed the most recent trading day at $123.23, moving -0.56% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.13%. On the other hand, the Dow registered a loss of 1.33%, and the technology-centric Nasdaq decreased by 0.13%.
Shares of the maker of engineered products for the aerospace and other industries have depreciated by 6.1% over the course of the past month, underperforming the Aerospace sector's loss of 2.29% and outperforming the S&P 500's loss of 6.3%.
The investment community will be closely monitoring the performance of Howmet in its forthcoming earnings report. The company is scheduled to release its earnings on May 1, 2025. 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. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.93 billion, up 5.96% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.25 per share and revenue of $8.05 billion, which would represent changes of +20.82% and +8.32%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Howmet. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.49% downward. Howmet currently has a Zacks Rank of #3 (Hold).
With respect to valuation, Howmet is currently being traded at a Forward P/E ratio of 38.1. This expresses a premium compared to the average Forward P/E of 19.19 of its industry.
We can additionally observe that HWM currently boasts a PEG ratio of 2.22. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Aerospace - Defense industry was having an average PEG ratio of 2.04.
The Aerospace - Defense industry is part of the Aerospace sector. At present, this industry carries a Zacks Industry Rank of 152, placing it within the bottom 39% of over 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.
You can find more information on all of these metrics, and much 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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