In the latest trading session, Howmet (HWM) closed at $271.58, marking a -1.4% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.28%. On the other hand, the Dow registered a loss of 1.09%, and the technology-centric Nasdaq increased by 0.2%.
The maker of engineered products for the aerospace and other industries's stock has climbed by 7.1% in the past month, exceeding the Aerospace sector's gain of 4.11% and the S&P 500's gain of 1.64%.
The investment community will be closely monitoring the performance of Howmet in its forthcoming earnings report. On that day, Howmet is projected to report earnings of $1.24 per share, which would represent year-over-year growth of 36.26%. In the meantime, our current consensus estimate forecasts the revenue to be $2.42 billion, indicating a 17.68% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.97 per share and a revenue of $9.72 billion, signifying shifts of +31.83% and +17.8%, respectively, from the last year.
Investors should also note any 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 demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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, there's been a 0.02% rise in the Zacks Consensus EPS estimate. Currently, Howmet is carrying a Zacks Rank of #2 (Buy).
In terms of valuation, Howmet is presently being traded at a Forward P/E ratio of 55.37. Its industry sports an average Forward P/E of 23.2, so one might conclude that Howmet is trading at a premium comparatively.
We can additionally observe that HWM currently boasts a PEG ratio of 2.21. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Aerospace - Defense industry currently had an average PEG ratio of 1.59 as of yesterday's close.
The Aerospace - Defense industry is part of the Aerospace sector. This industry, currently bearing a Zacks Industry Rank of 107, finds itself in the top 44% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Howmet Aerospace Inc. (HWM): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).