Howmet (HWM) closed the most recent trading day at $181.06, moving +2.9% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.83%. At the same time, the Dow added 0.77%, and the tech-heavy Nasdaq gained 1.02%.
The maker of engineered products for the aerospace and other industries's shares have seen an increase of 1.16% over the last month, not keeping up with the Aerospace sector's gain of 2.79% and the S&P 500's gain of 4.99%.
The upcoming earnings release of Howmet will be of great interest to investors. It is anticipated that the company will report an EPS of $0.87, marking a 29.85% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $1.99 billion, up 5.78% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.47 per share and a revenue of $8.06 billion, signifying shifts of +29% and +8.53%, respectively, from the last year.
Any recent changes to analyst estimates for Howmet should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.33% increase. Right now, Howmet possesses a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Howmet has a Forward P/E ratio of 50.76 right now. Its industry sports an average Forward P/E of 24.21, so one might conclude that Howmet is trading at a premium comparatively.
One should further note that HWM currently holds a PEG ratio of 2.67. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Aerospace - Defense industry currently had an average PEG ratio of 2.02 as of yesterday's close.
The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 65, which puts it in the top 27% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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