The latest trading session saw Howmet (HWM – Free Report) ending at $111.23, denoting a -1.16% adjustment from its last day’s close. The stock trailed the S&P 500, which registered a daily loss of 1.11%. On the other hand, the Dow registered a loss of 0.77%, and the technology-centric Nasdaq decreased by 1.49%.
The maker of engineered products for the aerospace and other industries’s stock has dropped by 3.57% in the past month, falling short of the Aerospace sector’s loss of 2.58% and the S&P 500’s gain of 0.4%.
Market participants will be closely following the financial results of Howmet in its upcoming release. The company is expected to report EPS of $0.71, up 33.96% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $1.87 billion, reflecting an 8.07% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.66 per share and revenue of $7.41 billion, indicating changes of +44.57% and +11.59%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Howmet should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts’ favorable outlook on the company’s business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Howmet currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, Howmet is currently exchanging hands at a Forward P/E ratio of 42.25. This valuation marks a premium compared to its industry’s average Forward P/E of 19.31.
We can additionally observe that HWM currently boasts a PEG ratio of 1.51. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company’s anticipated earnings growth rate. As of the close of trade yesterday, the Aerospace – Defense industry held an average PEG ratio of 1.65.
The Aerospace – Defense industry is part of the Aerospace sector. At present, this industry carries a Zacks Industry Rank of 156, placing it within the bottom 38% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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