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Howmet (HWM) Sees a More Significant Dip Than Broader Market: Some Facts to Know
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In the latest trading session, Howmet (HWM - Free Report) closed at $78.63, marking a -1.88% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.31%. On the other hand, the Dow registered a gain of 0.67%, and the technology-centric Nasdaq decreased by 1.09%.
Heading into today, shares of the maker of engineered products for the aerospace and other industries had lost 5.41% over the past month, lagging the Construction sector's loss of 4.24% and the S&P 500's gain of 2.73% in that time.
Market participants will be closely following the financial results of Howmet in its upcoming release. On that day, Howmet is projected to report earnings of $0.60 per share, which would represent year-over-year growth of 36.36%. In the meantime, our current consensus estimate forecasts the revenue to be $1.84 billion, indicating a 11.57% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.39 per share and a revenue of $7.34 billion, indicating changes of +29.89% and +10.59%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Howmet. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Howmet currently has a Zacks Rank of #2 (Buy).
With respect to valuation, Howmet is currently being traded at a Forward P/E ratio of 33.59. This indicates a premium in contrast to its industry's Forward P/E of 19.97.
We can additionally observe that HWM currently boasts a PEG ratio of 1.48. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Engineering - R and D Services was holding an average PEG ratio of 1.33 at yesterday's closing price.
The Engineering - R and D Services industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 51, finds itself in the top 21% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Howmet (HWM) Sees a More Significant Dip Than Broader Market: Some Facts to Know
In the latest trading session, Howmet (HWM - Free Report) closed at $78.63, marking a -1.88% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.31%. On the other hand, the Dow registered a gain of 0.67%, and the technology-centric Nasdaq decreased by 1.09%.
Heading into today, shares of the maker of engineered products for the aerospace and other industries had lost 5.41% over the past month, lagging the Construction sector's loss of 4.24% and the S&P 500's gain of 2.73% in that time.
Market participants will be closely following the financial results of Howmet in its upcoming release. On that day, Howmet is projected to report earnings of $0.60 per share, which would represent year-over-year growth of 36.36%. In the meantime, our current consensus estimate forecasts the revenue to be $1.84 billion, indicating a 11.57% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.39 per share and a revenue of $7.34 billion, indicating changes of +29.89% and +10.59%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Howmet. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Howmet currently has a Zacks Rank of #2 (Buy).
With respect to valuation, Howmet is currently being traded at a Forward P/E ratio of 33.59. This indicates a premium in contrast to its industry's Forward P/E of 19.97.
We can additionally observe that HWM currently boasts a PEG ratio of 1.48. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Engineering - R and D Services was holding an average PEG ratio of 1.33 at yesterday's closing price.
The Engineering - R and D Services industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 51, finds itself in the top 21% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.