In the latest market close, Howmet (HWM – Free Report) reached $124.40, with a -0.07% movement compared to the previous day. The stock’s performance was behind the S&P 500’s daily gain of 0.55%. At the same time, the Dow added 0.52%, and the tech-heavy Nasdaq gained 0.7%.
Heading into today, shares of the maker of engineered products for the aerospace and other industries had lost 3.5% over the past month, lagging the Aerospace sector’s loss of 3.12% and outpacing the S&P 500’s loss of 5.56% in that time.
The investment community will be paying close attention to the earnings performance of Howmet in its upcoming release. The company is expected to report EPS of $0.77, up 35.09% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $1.93 billion, showing a 5.87% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.23 per share and a revenue of $8.06 billion, signifying shifts of +20.07% and +8.54%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Howmet. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 3.02% higher. Howmet presently features a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Howmet has a Forward P/E ratio of 38.54 right now. This denotes a premium relative to the industry’s average Forward P/E of 18.63.
We can additionally observe that HWM currently boasts a PEG ratio of 1.74. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company’s expected earnings growth trajectory. The Aerospace – Defense industry had an average PEG ratio of 1.81 as trading concluded yesterday.
The Aerospace – Defense industry is part of the Aerospace sector. With its current Zacks Industry Rank of 136, this industry ranks in the bottom 46% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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