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The latest trading session saw Howmet (HWM) ending at $111.23, denoting a -1.16% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily loss of 1.11%. On the other hand, the Dow registered a loss of 0.77%, and the technology-centric Nasdaq decreased by 1.49%.
The maker of engineered products for the aerospace and other industries's stock has dropped by 3.57% in the past month, falling short of the Aerospace sector's loss of 2.58% and the S&P 500's gain of 0.4%.
Market participants will be closely following the financial results of Howmet in its upcoming release. The company is expected to report EPS of $0.71, up 33.96% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $1.87 billion, reflecting an 8.07% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.66 per share and revenue of $7.41 billion, indicating changes of +44.57% and +11.59%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Howmet should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Howmet currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, Howmet is currently exchanging hands at a Forward P/E ratio of 42.25. This valuation marks a premium compared to its industry's average Forward P/E of 19.31.
We can additionally observe that HWM currently boasts a PEG ratio of 1.51. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Aerospace - Defense industry held an average PEG ratio of 1.65.
The Aerospace - Defense industry is part of the Aerospace sector. At present, this industry carries a Zacks Industry Rank of 156, placing it within the bottom 38% of over 250 industries.