Howmet (HWM) closed at $271.19 in the latest trading session, marking a -2.88% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.51%. Elsewhere, the Dow saw a downswing of 0.2%, while the tech-heavy Nasdaq depreciated by 1.47%.
Heading into today, shares of the maker of engineered products for the aerospace and other industries had lost 1.41% over the past month, outpacing the Aerospace sector's loss of 2.93% and lagging the S&P 500's gain of 0.53%.
The investment community will be paying close attention to the earnings performance of Howmet in its upcoming release. The company is slated to reveal its earnings on August 6, 2026. It is anticipated that the company will report an EPS of $1.24, marking a 36.26% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $2.41 billion, up 17.52% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.98 per share and a revenue of $9.74 billion, signifying shifts of +32.1% and +18.02%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Howmet. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.11% higher. Right now, Howmet possesses a Zacks Rank of #2 (Buy).
In terms of valuation, Howmet is currently trading at a Forward P/E ratio of 56.09. Its industry sports an average Forward P/E of 22.21, so one might conclude that Howmet is trading at a premium comparatively.
We can additionally observe that HWM currently boasts a PEG ratio of 2.22. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Aerospace - Defense industry currently had an average PEG ratio of 1.56 as of yesterday's close.
The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 100, which puts it in the top 41% of all 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.
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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Howmet Aerospace Inc. (HWM): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).