Howmet (HWM – Free Report) closed at $132.43 in the latest trading session, marking a -1.27% move from the prior day. This change lagged the S&P 500’s daily loss of 0.33%. Meanwhile, the Dow experienced a drop of 0.37%, and the technology-dominated Nasdaq saw a decrease of 0.53%.
Shares of the maker of engineered products for the aerospace and other industries witnessed a gain of 1.64% over the previous month, trailing the performance of the Aerospace sector with its gain of 4.54% and outperforming the S&P 500’s loss of 4.03%.
Analysts and investors alike will be keeping a close eye on the performance of Howmet in its upcoming earnings disclosure. On that day, Howmet is projected to report earnings of $0.77 per share, which would represent year-over-year growth of 35.09%. At the same time, our most recent consensus estimate is projecting a revenue of $1.93 billion, reflecting a 5.87% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.26 per share and revenue of $8.06 billion, which would represent changes of +21.19% and +8.54%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Howmet. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts’ confidence in the company’s business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.3% decrease. As of now, Howmet holds a Zacks Rank of #3 (Hold).
From a valuation perspective, Howmet is currently exchanging hands at a Forward P/E ratio of 41.16. For comparison, its industry has an average Forward P/E of 21.23, which means Howmet is trading at a premium to the group.
Also, we should mention that HWM has a PEG ratio of 2.41. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company’s projected earnings growth. The Aerospace – Defense industry currently had an average PEG ratio of 1.84 as of yesterday’s close.
The Aerospace – Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 152, which puts it in the bottom 40% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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