In the latest close session, Howmet (HWM) was down 10.7% at $231.53. This change lagged the S&P 500's daily loss of 0.58%. On the other hand, the Dow registered a loss of 1.18%, and the technology-centric Nasdaq decreased by 0.32%.
The maker of engineered products for the aerospace and other industries's stock has dropped by 8.61% in the past month, exceeding the Aerospace sector's loss of 10.2% and lagging the S&P 500's loss of 0.36%.
Analysts and investors alike will be keeping a close eye on the performance of Howmet in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.34, reflecting a 41.05% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.59 billion, indicating a 23.86% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.26 per share and revenue of $10.12 billion, which would represent changes of +39.52% and +22.68%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Howmet. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.38% upward. Howmet is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, Howmet currently has a Forward P/E ratio of 49.29. This indicates a premium in contrast to its industry's Forward P/E of 21.9.
It's also important to note that HWM currently trades at a PEG ratio of 2.37. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Aerospace - Defense was holding an average PEG ratio of 1.65 at yesterday's closing price.
The Aerospace - Defense industry is part of the Aerospace sector. At present, this industry carries a Zacks Industry Rank of 89, placing it within the top 37% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much 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).