We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why It is Worth Investing in Howmet (HWM) Stock Now
Read MoreHide Full Article
Howmet Aerospace Inc. (HWM - Free Report) is well poised for growth, courtesy of strength across its businesses, healthy liquidity position, solid product portfolio and a sound capital-deployment strategy.
Image Source: Zacks Investment Research
The currently Zacks Rank #2 (Buy) player has a market capitalization of $15.1 billion. In the past three months, the stock has gained 8.8% compared with the industry’s growth of 5.9%.
Let’s delve into the factors that make HWM a smart investment choice at the moment.
Strong Business: Howmet stands to gain from its presence in the diverse end markets, which allows it to offset risks associated with a single market. In the quarters ahead, strength in the end markets like commercial transportation, aerospace-commercial, industrial gas turbine and others will likely benefit HWM. Its revenues from commercial transportation and commercial aerospace grew 10% and 29% year over year, respectively, in the first quarter of 2022. Its second-quarter revenues are projected in the range of $1.35-$1.39 billion.
Healthy Liquidity Position: HWM’s solid liquidity position has been aiding it over time. Howmet had an available cash balance of $522 million and a revolving credit facility of $1 billion (set to mature in September 2026), exiting first-quarter 2022. HWM predicts an adjusted free cash flow of $575-$675 million for 2022.
Shareholder-Friendly Policies: Howmet focuses on rewarding its shareholders through dividend payments and share buybacks. In the first three months of 2022, HWM used $9 million for paying out dividends and repurchasing shares worth $175 million. It is worth noting that HWM repurchased 3 million shares for $100 million in January 2022.
Solid Initiatives: HWM’s solid product portfolio, effective pricing and cost-reduction efforts are likely to drive its performance over time. Howmet anticipates earnings (excluding special items) of $1.33-$1.45, with the mid-point at $1.39, for 2022. The midpoint is above $1.01 recorded in 2021. The second-quarter 2022 earnings are predicted to be 31-33 cents per share.
Northbound Estimate Revisions: In the past 60 days, the Zacks Consensus Estimate for 2022 earnings has moved up from $1.38 to $1.41 on four upward estimate revisions versus none downward. The consensus estimate for 2023 earnings has increased from $1.80 to $1.82 on two northward estimate revisions against none southward.
Zacks Rank & Other Stocks to Consider
Some other top-ranked companies from the industrial products sector are discussed below:
AIT’s earnings estimates have increased 5.9% for fiscal 2022 (ending June 2022) in the past 60 days. Its shares have rallied 5.2% in the past three months.
Roper Technologies, Inc. (ROP - Free Report) presently has a Zacks Rank #2 (Buy). Its earnings surprise in the last four quarters was 2%, on average.
In the past 60 days, ROP’s earnings estimates have increased 1.2% for 2022. The stock has declined 0.5% in the past three months.
IDEX Corporation (IEX - Free Report) is presently Zacks #2 Ranked. IEX’s earnings surprise in the last four quarters was 2.8%, on average.
In the past 60 days, the stock’s earnings estimates have increased 3.4% for 2022. The stock has increased 1.8% in the past three months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Here's Why It is Worth Investing in Howmet (HWM) Stock Now
Howmet Aerospace Inc. (HWM - Free Report) is well poised for growth, courtesy of strength across its businesses, healthy liquidity position, solid product portfolio and a sound capital-deployment strategy.
Image Source: Zacks Investment Research
The currently Zacks Rank #2 (Buy) player has a market capitalization of $15.1 billion. In the past three months, the stock has gained 8.8% compared with the industry’s growth of 5.9%.
Let’s delve into the factors that make HWM a smart investment choice at the moment.
Strong Business: Howmet stands to gain from its presence in the diverse end markets, which allows it to offset risks associated with a single market. In the quarters ahead, strength in the end markets like commercial transportation, aerospace-commercial, industrial gas turbine and others will likely benefit HWM. Its revenues from commercial transportation and commercial aerospace grew 10% and 29% year over year, respectively, in the first quarter of 2022. Its second-quarter revenues are projected in the range of $1.35-$1.39 billion.
Healthy Liquidity Position: HWM’s solid liquidity position has been aiding it over time. Howmet had an available cash balance of $522 million and a revolving credit facility of $1 billion (set to mature in September 2026), exiting first-quarter 2022. HWM predicts an adjusted free cash flow of $575-$675 million for 2022.
Shareholder-Friendly Policies: Howmet focuses on rewarding its shareholders through dividend payments and share buybacks. In the first three months of 2022, HWM used $9 million for paying out dividends and repurchasing shares worth $175 million. It is worth noting that HWM repurchased 3 million shares for $100 million in January 2022.
Solid Initiatives: HWM’s solid product portfolio, effective pricing and cost-reduction efforts are likely to drive its performance over time. Howmet anticipates earnings (excluding special items) of $1.33-$1.45, with the mid-point at $1.39, for 2022. The midpoint is above $1.01 recorded in 2021. The second-quarter 2022 earnings are predicted to be 31-33 cents per share.
Northbound Estimate Revisions: In the past 60 days, the Zacks Consensus Estimate for 2022 earnings has moved up from $1.38 to $1.41 on four upward estimate revisions versus none downward. The consensus estimate for 2023 earnings has increased from $1.80 to $1.82 on two northward estimate revisions against none southward.
Zacks Rank & Other Stocks to Consider
Some other top-ranked companies from the industrial products sector are discussed below:
Applied Industrial Technologies, Inc. (AIT - Free Report) presently sports a Zacks Rank #1. AIT delivered a trailing four-quarter earnings surprise of 25.4%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AIT’s earnings estimates have increased 5.9% for fiscal 2022 (ending June 2022) in the past 60 days. Its shares have rallied 5.2% in the past three months.
Roper Technologies, Inc. (ROP - Free Report) presently has a Zacks Rank #2 (Buy). Its earnings surprise in the last four quarters was 2%, on average.
In the past 60 days, ROP’s earnings estimates have increased 1.2% for 2022. The stock has declined 0.5% in the past three months.
IDEX Corporation (IEX - Free Report) is presently Zacks #2 Ranked. IEX’s earnings surprise in the last four quarters was 2.8%, on average.
In the past 60 days, the stock’s earnings estimates have increased 3.4% for 2022. The stock has increased 1.8% in the past three months.