Howmet Aerospace Surges to 353rd in Trading Volume Amid 59.87% YTD Return and 403.26% Three-Year Rally as Analysts Back Earnings Momentum and Bullish Outlook

Howmet Aerospace (HWM) closed at $174.00 on September 3, 2025, with a 0.73% gain and a trading volume of $290 million, ranking 353rd in market activity. The stock has outperformed broader benchmarks, with a year-to-date total return of 59.87% and a three-year return of 403.26%. Analysts highlight robust earnings momentum, driven by recent outperformance in defense aerospace and commercial aviation sectors.

Q2 2025 earnings reported on July 31 showed an EPS of $0.91, exceeding estimates by $0.04, with revenue rising 9.2% to $2.05 billion. The company raised FY 2025 guidance, projecting EPS between $3.56 and $3.64, above the $3.52 consensus. Analysts note strong returns on capital and improved investor sentiment, reflected in a 6.6% decline in short interest over the past month.

Valuation metrics remain mixed. Howmet trades at a P/E ratio of 51.50, higher than the S&P 500 average but lower than the aerospace sector average. A PEG ratio of 2.22 suggests potential overvaluation relative to growth, though institutional ownership at 90.46% signals confidence. The stock is scheduled to report Q3 earnings on November 5, with expectations for continued earnings growth of 22.02% in FY 2026.

Backtest results indicate HWM has outperformed the S&P 500 over one-year (88.11% vs. 16.63%) and three-year (403.26% vs. 64.32%) periods. Analysts maintain a "Moderate Buy" consensus, citing strong fundamentals despite elevated valuations. Upcoming catalysts include the Jefferies Industrials Conference presentation and potential sector tailwinds from defense spending.