Here's What Lifted Howmet Aerospace (HWM) in Q1

Fidelity Investments, an investment management company, recently released its “Fidelity Growth Strategies Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The Fidelity Growth Strategies Fund is a diversified domestic equity strategy with a focus on mid-cap growth investments. The fund focuses on investing in high-quality companies that demonstrate consistent growth and generate positive free cash flow. The fund’s Retail Class shares returned -8.03% in the first quarter, underperforming the -7.12% return of the benchmark Russell Midcap Growth Index. U.S. mid-cap growth stocks rose in January but then fell in February and March as post-election optimism was replaced by concern over executive actions, government disruptions, and rising uncertainty about trade and tariffs. In addition, you can check the fund’s top 5 holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Fidelity Growth Strategies Fund highlighted stocks such as Howmet Aerospace Inc. (NYSE:HWM). Howmet Aerospace Inc. (NYSE:HWM) provides advanced engineered solutions for the aerospace and transportation industries. The one-month return of Howmet Aerospace Inc. (NYSE:HWM) was 1.16%, and its shares gained 121.80% of their value over the last 52 weeks. On July 2, 2025, Howmet Aerospace Inc. (NYSE:HWM) stock closed at $175.95 per share, with a market capitalization of $71.026 billion.

Fidelity Growth Strategies Fund stated the following regarding Howmet Aerospace Inc. (NYSE:HWM) in its Q1 2025 investor letter:

"Conversely, a sizable overweight in Howmet Aerospace Inc. (NYSE:HWM) was the top individual contributor versus the benchmark. Shares of the jet engine components maker gained about 19% for the three months, rising amid better-than-expected Q4 earnings reported in February. The company's revenue rose 9% in the quarter, thanks to a 13% uptick within its commercial aerospace business. Management raised Howmet's Q1 dividend by 25% while increasing revenue guidance for the full year, stemming from growing aerospace production and strong demand."

Howmet Aerospace Inc. (NYSE:HWM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 56 hedge fund portfolios held Howmet Aerospace Inc. (NYSE:HWM) at the end of the first quarter, which was 58 in the previous quarter. While we acknowledge the potential of Howmet Aerospace Inc. (NYSE:HWM) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered Howmet Aerospace Inc. (NYSE:HWM) and shared the list of stocks Jim Cramer recently shared insights on. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of HWM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.