In the latest close session, Howmet (HWM) was down 1.63% at $236.52. The stock's performance was behind the S&P 500's daily loss of 0.04%. On the other hand, the Dow registered a loss of 0.57%, and the technology-centric Nasdaq increased by 0.04%.
Shares of the maker of engineered products for the aerospace and other industries witnessed a gain of 4.33% over the previous month, beating the performance of the Aerospace sector with its loss of 1.96%, and underperforming the S&P 500's gain of 12.24%.
The upcoming earnings release of Howmet will be of great interest to investors. The company's earnings report is expected on May 7, 2026. The company is expected to report EPS of $1.11, up 29.07% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $2.24 billion, showing a 15.18% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $4.57 per share and a revenue of $9.25 billion, demonstrating changes of +21.22% and +12.09%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Howmet. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.18% rise in the Zacks Consensus EPS estimate. Currently, Howmet is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Howmet is currently trading at a Forward P/E ratio of 52.61. This expresses a premium compared to the average Forward P/E of 22.03 of its industry.
We can also see that HWM currently has a PEG ratio of 2.22. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. HWM's industry had an average PEG ratio of 1.64 as of yesterday's close.
The Aerospace - Defense industry is part of the Aerospace sector. Currently, this industry holds a Zacks Industry Rank of 83, positioning it in the top 35% of all 250+ industries.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Howmet Aerospace Inc. (HWM): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).