Back to top

Image: Bigstock

Howmet (HWM) Rises As Market Takes a Dip: Key Facts

Read MoreHide Full Article

In the latest trading session, Howmet (HWM - Free Report) closed at $106.32, marking a +0.74% move from the previous day. This move outpaced the S&P 500's daily loss of 0.18%. Elsewhere, the Dow lost 0.8%, while the tech-heavy Nasdaq added 0.27%.

The maker of engineered products for the aerospace and other industries's shares have seen an increase of 8.3% over the last month, surpassing the Construction sector's loss of 3.59% and the S&P 500's gain of 4.46%.

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 November 6, 2024. The company's earnings per share (EPS) are projected to be $0.65, reflecting a 41.3% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $1.85 billion, showing a 11.83% escalation compared to the year-ago quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.60 per share and a revenue of $7.46 billion, signifying shifts of +41.3% and +12.4%, respectively, from the last 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. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, 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 past month, the Zacks Consensus EPS estimate has moved 0.21% higher. At present, Howmet boasts a Zacks Rank of #2 (Buy).

In terms of valuation, Howmet is presently being traded at a Forward P/E ratio of 40.67. Its industry sports an average Forward P/E of 21.85, so one might conclude that Howmet is trading at a premium comparatively.

One should further note that HWM currently holds a PEG ratio of 1.53. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Engineering - R and D Services industry held an average PEG ratio of 1.58.

The Engineering - R and D Services industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 100, finds itself in the top 40% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow HWM in the coming trading sessions, be sure to utilize Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Howmet Aerospace Inc. (HWM) - free report >>

Published in