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Howmet (HWM) Stock Sinks As Market Gains: Here's Why

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Howmet (HWM - Free Report) ended the recent trading session at $125.48, demonstrating a -0.71% swing from the preceding day's closing price. This move lagged the S&P 500's daily gain of 0.72%. On the other hand, the Dow registered a gain of 0.3%, and the technology-centric Nasdaq increased by 1.35%.

The maker of engineered products for the aerospace and other industries's shares have seen an increase of 12.37% over the last month, surpassing the Aerospace sector's gain of 3.41% and the S&P 500's gain of 1.02%.

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 February 13, 2025. The company is predicted to post an EPS of $0.72, indicating a 35.85% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $1.88 billion, indicating an 8.42% upward movement from the same quarter last year.

Investors should also take note of any recent adjustments to analyst estimates for Howmet. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 moved 0.18% lower. Howmet is holding a Zacks Rank of #4 (Sell) right now.

Investors should also note Howmet's current valuation metrics, including its Forward P/E ratio of 39.83. Its industry sports an average Forward P/E of 19.76, so one might conclude that Howmet is trading at a premium comparatively.

One should further note that HWM currently holds a PEG ratio of 1.43. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Aerospace - Defense industry currently had an average PEG ratio of 1.43 as of yesterday's close.

The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 74, which puts it in the top 30% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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