In the latest trading session, Howmet (HWM – Free Report) closed at $133.90, marking a +1.61% move from the previous day. The stock’s performance was ahead of the S&P 500’s daily gain of 0.67%. On the other hand, the Dow registered a gain of 0.56%, and the technology-centric Nasdaq increased by 0.87%.
Coming into today, shares of the maker of engineered products for the aerospace and other industries had gained 3.75% in the past month. In that same time, the Aerospace sector gained 8.52%, while the S&P 500 lost 5.28%.
The investment community will be paying close attention to the earnings performance of Howmet in its upcoming release. The company’s earnings per share (EPS) are projected to be $0.77, reflecting a 35.09% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.93 billion, indicating a 5.87% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.26 per share and revenue of $8.06 billion. These totals would mark changes of +21.19% and +8.54%, respectively, from last year.
It’s also important for investors to be aware of any recent modifications to analyst estimates for Howmet. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts’ favorable outlook on the company’s business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we’ve crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.3% lower. Howmet is currently sporting a Zacks Rank of #3 (Hold).
Looking at valuation, Howmet is presently trading at a Forward P/E ratio of 40.44. Its industry sports an average Forward P/E of 20.59, so one might conclude that Howmet is trading at a premium comparatively.
It is also worth noting that HWM currently has a PEG ratio of 2.36. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company’s projected earnings growth. The average PEG ratio for the Aerospace – Defense industry stood at 2.06 at the close of the market yesterday.
The Aerospace – Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 154, which puts it in the bottom 39% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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