Howmet (HWM) ended the recent trading session at $210.90, demonstrating a -1.77% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.34%. Meanwhile, the Dow experienced a drop of 0.94%, and the technology-dominated Nasdaq saw an increase of 0.16%.
Coming into today, shares of the maker of engineered products for the aerospace and other industries had gained 12.19% in the past month. In that same time, the Aerospace sector gained 9.73%, while the S&P 500 gained 1.19%.
The investment community will be paying close attention to the earnings performance of Howmet in its upcoming release. The company is forecasted to report an EPS of $0.96, showcasing a 29.73% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.12 billion, up 12.22% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.69 per share and revenue of $8.21 billion, which would represent changes of +37.17% and 0%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Howmet. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
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, 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. The Zacks Consensus EPS estimate has moved 0.05% lower within the past month. Howmet is currently a Zacks Rank #3 (Hold).
Looking at valuation, Howmet is presently trading at a Forward P/E ratio of 48.64. For comparison, its industry has an average Forward P/E of 22.82, which means Howmet is trading at a premium to the group.
Investors should also note that HWM has a PEG ratio of 2.05 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Aerospace - Defense industry was having an average PEG ratio of 1.79.
The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 106, putting it in the top 44% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Howmet Aerospace Inc. (HWM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
