Is Howmet Aerospace (HWM) One of the Best Large Cap Defense Stocks to Buy Now?

Generated by AI AgentWesley Park
Wednesday, Feb 19, 2025 3:33 pm ET1min read
HWM--

Howmet Aerospace (HWM) has been making waves in the defense industry, with impressive financial performance and a strong outlook for its end markets. As an investor, you might be wondering if HWM is one of the best large cap defense stocks to buy now. Let's dive into the data and find out.



Financial Performance

HWM's revenue grew by 11.90% in 2024 compared to the previous year, reaching $7.43 billion. Earnings per share (EPS) increased by 51.11% to $2.81. The company's profit margin stood at 15.55%, and its return on equity (ROE) was 26.89%. These strong financial metrics indicate that HWM is well-positioned in the defense industry.



End Market Outlook

HWM's end markets, particularly commercial aerospace, defense aerospace, and industrial markets, are expected to remain strong in the near to medium term. The commercial aerospace market is anticipated to grow, driven by rising OEM production rates and strong demand for engine spares. The defense aerospace market is also expected to grow, with increased demand for defense-related products and services. Industrial markets are likely to remain strong, with increased demand for industrial products and services.



Analyst Ratings and Price Targets

Analysts have a positive outlook on HWM, with an average price target of $124.19, which is -11.22% lower than the current price. The consensus rating is "Buy," indicating that analysts believe this stock is likely to outperform the market over the next twelve months.



Conclusion

Based on HWM's strong financial performance, positive end market outlook, and positive analyst ratings, it appears that HWM is indeed one of the best large cap defense stocks to buy now. However, it is essential to consider other factors, such as the company's debt levels, cash flow generation, and potential risks, before making a final investment decision. As always, it is crucial to conduct thorough research and consult with a financial advisor before investing in any stock.

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