Howmet (HWM) closed the most recent trading day at $173.34, moving +1.83% from the previous trading session. This change outpaced the S&P 500's 0.22% loss on the day. On the other hand, the Dow registered a gain of 0.08%, and the technology-centric Nasdaq decreased by 0.51%.
Shares of the maker of engineered products for the aerospace and other industries witnessed a gain of 4.43% over the previous month, beating the performance of the Aerospace sector with its gain of 2.35%, and the S&P 500's gain of 0.45%.
The investment community will be closely monitoring the performance of Howmet in its forthcoming earnings report. The company is predicted to post an EPS of $0.86, indicating a 28.36% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.99 billion, up 5.92% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $3.46 per share and a revenue of $8.06 billion, demonstrating changes of +28.62% and +8.48%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Howmet. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 #1 (Strong Buy).
Looking at valuation, Howmet is presently trading at a Forward P/E ratio of 49.25. This denotes a premium relative to the industry average Forward P/E of 23.76.
It is also worth noting that HWM currently has a PEG ratio of 2.59. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. HWM's industry had an average PEG ratio of 1.98 as of yesterday's close.
The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 68, which puts it in the top 28% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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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