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Is Howmet Aerospace (HWM) Stock Outpacing Its Construction Peers This Year?

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Investors interested in Construction stocks should always be looking to find the best-performing companies in the group. Howmet (HWM - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Construction peers, we might be able to answer that question.

Howmet is one of 91 companies in the Construction group. The Construction group currently sits at #4 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Howmet is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for HWM's full-year earnings has moved 9.5% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the latest available data, HWM has gained about 75.3% so far this year. At the same time, Construction stocks have gained an average of 16.4%. This means that Howmet is performing better than its sector in terms of year-to-date returns.

One other Construction stock that has outperformed the sector so far this year is Advanced Drainage Systems (WMS - Free Report) . The stock is up 20.3% year-to-date.

For Advanced Drainage Systems, the consensus EPS estimate for the current year has increased 7.3% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Howmet belongs to the Engineering - R and D Services industry, which includes 20 individual stocks and currently sits at #90 in the Zacks Industry Rank. This group has gained an average of 26.5% so far this year, so HWM is performing better in this area.

In contrast, Advanced Drainage Systems falls under the Building Products - Miscellaneous industry. Currently, this industry has 27 stocks and is ranked #60. Since the beginning of the year, the industry has moved +14.4%.

Going forward, investors interested in Construction stocks should continue to pay close attention to Howmet and Advanced Drainage Systems as they could maintain their solid performance.


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