In the latest close session, Howmet (HWM) was up +1.09% at $181.42. This move outpaced the S&P 500's daily gain of 0.61%. Elsewhere, the Dow gained 0.49%, while the tech-heavy Nasdaq added 0.95%.
The stock of maker of engineered products for the aerospace and other industries has risen by 6.43% in the past month, leading the Aerospace sector's gain of 1.1% and the S&P 500's gain of 3.85%.
Investors will be eagerly watching for the performance of Howmet in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.87, showcasing a 29.85% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $1.99 billion, indicating a 5.78% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.47 per share and revenue of $8.06 billion. These totals would mark changes of +29% and +8.53%, respectively, from last year.
Investors should also note any 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.33% higher. Howmet currently has a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Howmet currently has a Forward P/E ratio of 51.77. This represents a premium compared to its industry average Forward P/E of 24.54.
It is also worth noting that HWM currently has a PEG ratio of 2.72. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Aerospace - Defense industry currently had an average PEG ratio of 2.05 as of yesterday's close.
The Aerospace - Defense industry is part of the Aerospace sector. This industry, currently bearing a Zacks Industry Rank of 60, finds itself in the top 25% echelons of all 250+ industries.
Story continuesThe Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. 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).
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