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Howmet (HWM) Increases Yet Falls Behind Market: What Investors Need to Know
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In the latest market close, Howmet (HWM - Free Report) reached $83.43, with a +0.3% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.85%. Meanwhile, the Dow experienced a drop of 0.09%, and the technology-dominated Nasdaq saw an increase of 1.53%.
The maker of engineered products for the aerospace and other industries's shares have seen an increase of 2.84% over the last month, surpassing the Construction sector's loss of 5.58% and falling behind the S&P 500's gain of 3.11%.
The upcoming earnings release of Howmet will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.60, reflecting a 36.36% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.84 billion, indicating a 11.57% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $2.39 per share and a revenue of $7.34 billion, demonstrating changes of +29.89% and +10.59%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Howmet. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Howmet presently features a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Howmet is currently trading at a Forward P/E ratio of 34.87. For comparison, its industry has an average Forward P/E of 18.96, which means Howmet is trading at a premium to the group.
It is also worth noting that HWM currently has a PEG ratio of 1.53. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Engineering - R and D Services stocks are, on average, holding a PEG ratio of 1.33 based on yesterday's closing prices.
The Engineering - R and D Services industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 45, finds itself in the top 18% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Howmet (HWM) Increases Yet Falls Behind Market: What Investors Need to Know
In the latest market close, Howmet (HWM - Free Report) reached $83.43, with a +0.3% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.85%. Meanwhile, the Dow experienced a drop of 0.09%, and the technology-dominated Nasdaq saw an increase of 1.53%.
The maker of engineered products for the aerospace and other industries's shares have seen an increase of 2.84% over the last month, surpassing the Construction sector's loss of 5.58% and falling behind the S&P 500's gain of 3.11%.
The upcoming earnings release of Howmet will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.60, reflecting a 36.36% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.84 billion, indicating a 11.57% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $2.39 per share and a revenue of $7.34 billion, demonstrating changes of +29.89% and +10.59%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Howmet. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Howmet presently features a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Howmet is currently trading at a Forward P/E ratio of 34.87. For comparison, its industry has an average Forward P/E of 18.96, which means Howmet is trading at a premium to the group.
It is also worth noting that HWM currently has a PEG ratio of 1.53. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Engineering - R and D Services stocks are, on average, holding a PEG ratio of 1.33 based on yesterday's closing prices.
The Engineering - R and D Services industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 45, finds itself in the top 18% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.