Howmet Aerospace (HWM): A Beacon of Resilience in 2025's Challenging Large-Cap Landscape?

In a year marked by market turbulence and underperformance among many large-cap stocks, Howmet Aerospace (HWM) has emerged as a standout performer. With its Year-To-Date (YTD) returns soaring above both peers and indices, the question arises: Is HWM truly among the best-performing large-cap stocks so far in 2025? This analysis dives into the data, market context, and fundamentals to answer that question.

YTD Performance and Market Context

HWM’s YTD performance is the immediate focal point. While two figures are cited—37.76% and 92.2%—the distinction lies in calculation methods. The 37.76% likely reflects pure price return, whereas the 92.2% incorporates total returns, including dividends or reinvested gains. Even conservatively, the 37.76% places HWM in elite territory.

To contextualize this, consider the broader market’s struggles:
- The S&P 500 fell 4.27% in Q1 2025.
- The NASDAQ declined 10.42%, and the Russell 1000 Growth plummeted 9.97%.
- The Russell 1000 Growth underperformed its Value counterpart by 1,200 basis points, signaling a brutal environment for growth-focused large caps.

Fundamentals Driving Success

HWM’s outperformance isn’t accidental. Its Q1 2025 revenue rose 6% year-over-year to $1.94 billion, and management raised full-year guidance to $7.88 billion in revenue and higher EBITDA. These figures reflect robust demand in its core aerospace and defense segments.

Geopolitical tensions have amplified demand for military hardware, a key driver for Howmet. The company’s advanced components—turbine blades, engine parts, and defense systems—are critical to global defense spending, which remains elevated amid conflicts and strategic competition.

Valuation and Peer Comparison

HWM’s valuation metrics highlight investor optimism:
- P/E ratio of 45.38 (vs. sector median).
- Price/Sales ratio of 6.05 (vs. sector median).

While these multiples are elevated, they reflect expectations of sustained growth. In contrast, peers in tech-heavy sectors—the so-called “Mag Seven”—struggle with AI-related capital expenditure concerns and economic uncertainty.

The Case for HWM’s Ranking

Ranked 7th out of 11 best-performing large-cap stocks in 2025 (per Finviz/Yahoo Finance methodologies), HWM’s position is justified. Its YTD returns dwarf broader indices and peers. For instance, while the Russell 1000 Growth fell nearly 10%, HWM’s 92.2% total return (if accurate) would represent a 1,022% outperformance relative to the index. Even the conservative 37.76% price return outpaces the S&P 500 by over 400 basis points.

Risks and Considerations

No investment is without risks. HWM’s valuation could face pressure if defense spending wanes or geopolitical risks subside. Additionally, the two YTD return figures require clarification—investors should verify whether the 92.2% includes one-time events or dividends.

Conclusion: A Well-Earned Spot Among 2025’s Winners

The data is unequivocal: Howmet Aerospace (HWM) is among the top-performing large-cap stocks in 2025. Its 6% revenue growth, elevated guidance, and strategic positioning in a defense-driven market have propelled its stock to outperform indices and peers by wide margins.

While the P/E and Price/Sales ratios suggest some premium pricing, the fundamentals justify optimism. With $7.88 billion in projected revenue and a sector poised to benefit from ongoing geopolitical dynamics, HWM’s trajectory appears sustainable.

In a year where the Russell 1000 Growth slumped 9.97% and tech stocks faltered, HWM’s 37.76%–92.2% returns underscore its status as a standout performer. For investors seeking resilience in a volatile market, HWM’s combination of strong fundamentals and sector tailwinds makes it a compelling choice.

In summary, Howmet Aerospace isn’t just a large-cap survivor—it’s a standout winner, leveraging geopolitical trends and robust execution to shine in 2025’s challenging landscape.