Howmet (HWM) Falls More Steeply Than Broader Market: What Investors Need to Know

Howmet (HWM) ended the recent trading session at $236.75, demonstrating a -2.9% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.61%. At the same time, the Dow lost 0.26%, and the tech-heavy Nasdaq lost 0.93%.

Coming into today, shares of the maker of engineered products for the aerospace and other industries had lost 0.4% in the past month. In that same time, the Aerospace sector lost 1.15%, while the S&P 500 lost 2.25%.

Market participants will be closely following the financial results of Howmet in its upcoming release. The company's upcoming EPS is projected at $1.08, signifying a 25.58% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $2.24 billion, indicating a 15.3% growth compared to the corresponding quarter of the prior year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.55 per share and a revenue of $9.21 billion, representing changes of +20.69% and +11.57%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Howmet. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming 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, 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.42% increase. Currently, Howmet is carrying a Zacks Rank of #2 (Buy).

Digging into valuation, Howmet currently has a Forward P/E ratio of 53.64. This indicates a premium in contrast to its industry's Forward P/E of 24.14.

It is also worth noting that HWM currently has a PEG ratio of 2.26. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Aerospace - Defense was holding an average PEG ratio of 2.08 at yesterday's closing price.

The Aerospace - Defense industry is part of the Aerospace sector. Currently, this industry holds a Zacks Industry Rank of 87, positioning it in the top 36% 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.

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Howmet Aerospace Inc. (HWM): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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