Howmet Aerospace (HWM) stock surges 7.2% after beating earnings expectations and raising full-year guidance, with investors bullish on commercial aerospace engine components and fasteners amid strong aerospace and defense spending trends.

Howmet Aerospace reported Q4 earnings that exceeded expectations and raised full-year guidance, driven by strong demand for commercial aerospace components and favorable spending trends. The company also announced a Technology and Markets Day in March 2026. The earnings beat reinforces the durability of demand for the company's products and its ability to turn demand into high-margin earnings. However, investors should weigh how much of this optimism is already priced in, as the shares could be overextended by 29%.