In the latest close session, Howmet (HWM) was up +1.21% at $225.26. The stock's performance was ahead of the S&P 500's daily gain of 0.6%. Elsewhere, the Dow saw an upswing of 0.83%, while the tech-heavy Nasdaq appreciated by 0.64%.
The stock of maker of engineered products for the aerospace and other industries has fallen by 2.35% in the past month, leading the Aerospace sector's loss of 8.98% and undershooting the S&P 500's gain of 1.34%.
Analysts and investors alike will be keeping a close eye on the performance of Howmet in its upcoming earnings disclosure. The company's earnings report is set to go public on October 29, 2026. The company is predicted to post an EPS of $1.36, indicating a 43.16% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $2.59 billion, indicating a 23.98% upward movement from the same quarter last year.
HWM's full-year Zacks Consensus Estimates are calling for earnings of $5.33 per share and revenue of $10.12 billion. These results would represent year-over-year changes of +41.38% and +22.61%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Howmet. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.11% higher. Right now, Howmet possesses a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Howmet is presently being traded at a Forward P/E ratio of 41.75. This denotes a premium relative to the industry average Forward P/E of 20.87.
It's also important to note that HWM currently trades at a PEG ratio of 2.01. 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 1.57 as of yesterday's close.
The Aerospace - Defense industry is part of the Aerospace sector. This industry, currently bearing a Zacks Industry Rank of 90, finds itself in the top 37% 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.
Be sure to follow all of these stock-moving metrics, and many 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).