In the latest trading session, Howmet (HWM) closed at $225.00, marking a +2.11% move from the previous day. This move outpaced the S&P 500's daily gain of 1.16%. Elsewhere, the Dow gained 1.21%, while the tech-heavy Nasdaq added 1.18%.
The maker of engineered products for the aerospace and other industries's stock has climbed by 5.15% in the past month, falling short of the Aerospace sector's gain of 7.9% and outpacing the S&P 500's loss of 0.42%.
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 February 12, 2026. It is anticipated that the company will report an EPS of $0.96, marking a 29.73% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $2.13 billion, indicating a 12.44% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.69 per share and a revenue of $8.21 billion, indicating changes of +37.17% and 0%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Howmet. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 past month, the Zacks Consensus EPS estimate has moved 0.6% higher. Right now, Howmet possesses a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Howmet has a Forward P/E ratio of 49.62 right now. For comparison, its industry has an average Forward P/E of 24.2, which means Howmet is trading at a premium to the group.
Meanwhile, HWM's PEG ratio is currently 2.08. 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. By the end of yesterday's trading, the Aerospace - Defense industry had an average PEG ratio of 1.89.
The Aerospace - Defense industry is part of the Aerospace sector. Currently, this industry holds a Zacks Industry Rank of 100, positioning it in the top 41% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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