Howmet (HWM) Outpaces Stock Market Gains: What You Should Know

Howmet (HWM) closed the most recent trading day at $236.04, moving +2.09% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 1.15%. At the same time, the Dow added 1.38%, and the tech-heavy Nasdaq gained 1.38%.

Coming into today, shares of the maker of engineered products for the aerospace and other industries had lost 10.42% in the past month. In that same time, the Aerospace sector lost 8.81%, while the S&P 500 lost 5.69%.

Analysts and investors alike will be keeping a close eye on the performance of Howmet in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.08, signifying a 25.58% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $2.24 billion, up 15.3% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $4.55 per share and revenue of $9.21 billion, which would represent changes of +20.69% and +11.57%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Howmet. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. The Zacks Consensus EPS estimate has moved 0.81% higher within the past month. Currently, Howmet is carrying a Zacks Rank of #3 (Hold).

In the context of valuation, Howmet is at present trading with a Forward P/E ratio of 50.87. Its industry sports an average Forward P/E of 23.75, so one might conclude that Howmet is trading at a premium comparatively.

We can also see that HWM currently has a PEG ratio of 2.14. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. HWM's industry had an average PEG ratio of 2.02 as of yesterday's close.

The Aerospace - Defense industry is part of the Aerospace sector. Currently, this industry holds a Zacks Industry Rank of 91, positioning it in the top 38% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

5 Stocks Set to Double

Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

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

Zacks Investment Research