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Howmet (HWM) Increases Despite Market Slip: Here's What You Need to Know

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In the latest market close, Howmet (HWM - Free Report) reached $101.14, with a +1.05% movement compared to the previous day. The stock outpaced the S&P 500's daily loss of 0.33%. Elsewhere, the Dow lost 0.22%, while the tech-heavy Nasdaq lost 0.56%.

Shares of the maker of engineered products for the aerospace and other industries witnessed a loss of 0.82% over the previous month, beating the performance of the Aerospace sector with its loss of 6.93% and underperforming the S&P 500's gain of 1.83%.

Investors will be eagerly watching for the performance of Howmet in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on November 6, 2024. It is anticipated that the company will report an EPS of $0.65, marking a 41.3% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $1.85 billion, reflecting a 11.83% rise from the equivalent quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.59 per share and a revenue of $7.46 billion, representing changes of +40.76% and +12.28%, respectively, from the prior year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Howmet. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.18% higher. Howmet presently features a Zacks Rank of #2 (Buy).

In terms of valuation, Howmet is currently trading at a Forward P/E ratio of 38.58. This valuation marks a premium compared to its industry's average Forward P/E of 20.65.

One should further note that HWM currently holds a PEG ratio of 1.45. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Aerospace - Defense industry had an average PEG ratio of 1.95.

The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 102, putting it in the top 41% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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