In the latest close session, Howmet (HWM) was up +1.03% at $251.90. This change outpaced the S&P 500's 2.65% loss on the day. Elsewhere, the Dow lost 1.35%, while the tech-heavy Nasdaq lost 4.18%.
The maker of engineered products for the aerospace and other industries's stock has dropped by 8.52% in the past month, falling short of the Aerospace sector's gain of 7.19% and the S&P 500's gain of 5.47%.
The upcoming earnings release of Howmet will be of great interest to investors. On that day, Howmet is projected to report earnings of $1.21 per share, which would represent year-over-year growth of 32.97%. Our most recent consensus estimate is calling for quarterly revenue of $2.42 billion, up 17.68% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.96 per share and a revenue of $9.72 billion, signifying shifts of +31.56% and +17.8%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Howmet. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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 moved 10.39% higher. Howmet is currently sporting a Zacks Rank of #2 (Buy).
From a valuation perspective, Howmet is currently exchanging hands at a Forward P/E ratio of 50.25. For comparison, its industry has an average Forward P/E of 22.77, which means Howmet is trading at a premium to the group.
It is also worth noting that HWM currently has a PEG ratio of 2.01. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Aerospace - Defense industry stood at 1.56 at the close of the market yesterday.
The Aerospace - Defense industry is part of the Aerospace sector. Currently, this industry holds a Zacks Industry Rank of 93, positioning it in the top 39% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Howmet Aerospace Inc. (HWM): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).