For those looking to find strong Aerospace stocks, it is prudent to search for companies in the group that are outperforming their peers. Howmet (HWM) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.
Howmet is one of 67 individual stocks in the Aerospace sector. Collectively, these companies sit at #2 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Howmet is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for HWM's full-year earnings has moved 11.1% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the latest available data, HWM has gained about 35.4% so far this year. At the same time, Aerospace stocks have gained an average of 4.5%. This shows that Howmet is outperforming its peers so far this year.
Another stock in the Aerospace sector, Loar Holdings Inc. (LOAR), has outperformed the sector so far this year. The stock's year-to-date return is 5.4%.
Over the past three months, Loar Holdings Inc.'s consensus EPS estimate for the current year has increased 75.8%. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Howmet is a member of the Aerospace - Defense industry, which includes 29 individual companies and currently sits at #105 in the Zacks Industry Rank. On average, this group has gained an average of 0.8% so far this year, meaning that HWM is performing better in terms of year-to-date returns.
In contrast, Loar Holdings Inc. falls under the Aerospace - Defense Equipment industry. Currently, this industry has 37 stocks and is ranked #58. Since the beginning of the year, the industry has moved +14.8%.
Investors with an interest in Aerospace stocks should continue to track Howmet and Loar Holdings Inc.. These stocks will be looking to continue their solid performance.
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Howmet Aerospace Inc. (HWM): Free Stock Analysis Report
Loar Holdings Inc. (LOAR): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).