Latest news with #Howmet
Yahoo
12 hours ago
- Business
- Yahoo
2 Industrials Stocks to Own for Decades and 1 to Approach with Caution
Even if they go mostly unnoticed, industrial businesses are the backbone of our country. Still, their generally high capital requirements expose them to the ups and downs of economic cycles, and the market seems to be baking in a prolonged downturn as the industry has shed 2.3% over the past six months. This drop was disappointing since the S&P 500 stood firm. The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. On that note, here are two industrials stocks boasting durable advantages and one we're swiping left on. Market Cap: $14.18 billion Started in 1926 as an insulation contractor, APi (NYSE:APG) provides life safety solutions and specialty services for buildings and infrastructure. Why Does APG Worry Us? Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 3.9 percentage points Underwhelming 3% return on capital reflects management's difficulties in finding profitable growth opportunities At $51.54 per share, APi trades at 24.3x forward P/E. Check out our free in-depth research report to learn more about why APG doesn't pass our bar. Market Cap: $69.97 billion Inventing the first forged aluminum truck wheel, Howmet (NYSE:HWM) specializes in lightweight metals engineering and manufacturing multi-material components used in vehicles. Why Should You Buy HWM? Impressive 12.7% annual revenue growth over the last two years indicates it's winning market share this cycle Share repurchases have amplified shareholder returns as its annual earnings per share growth of 40.5% exceeded its revenue gains over the last two years Free cash flow margin grew by 12.6 percentage points over the last five years, giving the company more chips to play with Howmet is trading at $173.73 per share, or 51.2x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it's free. Market Cap: $7.36 billion With a significant portion of its products made from recycled materials, AZEK (NYSE:AZEK) designs and manufactures goods for outdoor living spaces. Why Are We Bullish on AZEK? Existing business lines can expand without risky acquisitions as its organic revenue growth averaged 12.5% over the past two years Share buybacks catapulted its annual earnings per share growth to 56.9%, which outperformed its revenue gains over the last two years Free cash flow margin increased by 8.8 percentage points over the last five years, giving the company more capital to invest or return to shareholders AZEK's stock price of $51.19 implies a valuation ratio of 33.5x forward P/E. Is now the time to initiate a position? Find out in our full research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
Yahoo
2 days ago
- Business
- Yahoo
Howmet (HWM) Ascends While Market Falls: Some Facts to Note
Howmet (HWM) closed the most recent trading day at $173.34, moving +1.83% from the previous trading session. This change outpaced the S&P 500's 0.22% loss on the day. On the other hand, the Dow registered a gain of 0.08%, and the technology-centric Nasdaq decreased by 0.51%. Shares of the maker of engineered products for the aerospace and other industries witnessed a gain of 4.43% over the previous month, beating the performance of the Aerospace sector with its gain of 2.35%, and the S&P 500's gain of 0.45%. The investment community will be closely monitoring the performance of Howmet in its forthcoming earnings report. The company is predicted to post an EPS of $0.86, indicating a 28.36% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.99 billion, up 5.92% from the prior-year quarter. For the full year, the Zacks Consensus Estimates project earnings of $3.46 per share and a revenue of $8.06 billion, demonstrating changes of +28.62% and +8.48%, respectively, from the preceding year. Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Howmet. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook. Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Howmet presently features a Zacks Rank of #1 (Strong Buy). Looking at valuation, Howmet is presently trading at a Forward P/E ratio of 49.25. This denotes a premium relative to the industry average Forward P/E of 23.76. It is also worth noting that HWM currently has a PEG ratio of 2.59. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. HWM's industry had an average PEG ratio of 1.98 as of yesterday's close. The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 68, which puts it in the top 28% of all 250+ industries. The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Be sure to follow all of these stock-moving metrics, and many more, on Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Howmet Aerospace Inc. (HWM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
16-06-2025
- Business
- Yahoo
This Top Aerospace Stock is a #1 (Strong Buy): Why It Should Be on Your Radar
Whether you're a growth, value, income, or momentum-focused investor, building a successful investment portfolio takes skill, research, and a little bit of luck. Howmet was upgraded to the Zacks Rank #1 list on May 27, 2025. The Zacks Rank is a unique stock-rating model that helps you take advantage of earnings estimate revision trends and provides a way to get into stocks highly sought after by institutional investors. Headquartered in Pittsburgh, PA, Howmet Aerospace Inc. provides engineered solutions for customers in the transportation and aerospace (both defense and commercial) industries. Notably, it offers forged wheels for commercial use in the transportation industry. It also provides aerospace fastening systems, components used in jet engines and structural parts made of titanium used in defense and aerospace applications. For fiscal 2025, seven analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.21 to $3.46 per share. HWM boasts an average earnings surprise of 8.8%. Analysts are expecting earnings to grow 28.6% for the current fiscal year, with revenue forecasted to rise 8.5%. Additionally, HWM has climbed higher over the past four weeks, gaining 5.2%. The S&P 500 is up 1.7% in comparison. With a #1 (Strong Buy) ranking, positive trend in earnings estimate revisions, and strong market momentum, Howmet could be just the stock to help your portfolio generate returns that could fund your retirement, your kids' college tuition, or your short- and long-term savings goals. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Howmet Aerospace Inc. (HWM) : Free Stock Analysis Report Zacks Investment Research
Yahoo
13-06-2025
- Business
- Yahoo
Bull of the Day: Howmet Aerospace (HWM)
Howmet Aerospace is a global provider of advanced engineering solutions for the aerospace and transportation industries. Formerly known as Arconic, Howmet Aerospace was founded in 1888 and is headquartered in Pittsburgh, Pennsylvania. This stock is displaying relative strength this year and has been making a series of all-time highs. The broader aerospace sector held up extremely well through the market volatility earlier in the year. Increasing volume has attracted investor attention as buying pressure accumulates in this top-ranked stock. A Zacks Rank #1 (Strong Buy), Howmet is part of the Zacks Aerospace - Defense industry group, which currently ranks in the top 27% out of more than 250 industries. Because this group is ranked in the top half of all Zacks Ranked Industries, we expect it to outperform the market over the next 3 to 6 months, just as it has so far this year: Image Source: Zacks Investment Research Take note of the favorable characteristics for this group below. Stocks in this industry are relatively undervalued based on traditional valuation metrics. They are also projected to experience above-average earnings growth, which signifies a powerful combination that should lead to higher prices in the future. Image Source: Zacks Investment Research Historical research studies suggest that approximately half of a stock's price appreciation is due to its industry grouping. In fact, the top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of more than 2 to 1. It's no secret that investing in stocks that are part of leading industry groups can give us a leg up relative to the market. By focusing on leading stocks within the top industries, we can dramatically improve our stock-picking success. The strongest driver of Howmet's business at the moment is the commercial aerospace market. The strength in air travel continues with wide-body aircraft demand also picking up, supporting resilient OEM spending. Pickup in air travel is generally positive for the company because the increased usage of aircraft spurs spending on parts that Howmet provides and also encourages airlines to buy more aircraft, which further boosts its sales. Howmet HWM offers airfoils and seamless rolled rings primarily for aircraft engines and industrial gas turbines. The company also produces aerospace fastening systems as well as commercial transportation, industrial, and other fasteners. Revenues from the commercial aerospace market increased 9% year-over-year in the first quarter of 2025, constituting 52% of its business. The sustained strength was attributed to new, more fuel-efficient aircraft with reduced carbon emissions and increased spare demand for engines. An expanding defense budget also remains a key catalyst for Howmet. The defense side of the industry has been witnessing positive momentum, cushioned by steady government support. The company has been experiencing robust orders for engine spares for the F-35 program and new builds for legacy fighters. In the first quarter, revenues from the defense aerospace market increased 19% from the prior-year period, accounting for 17% of the company's revenues. Howmet has built an incredible track record in terms of surpassing earnings estimates; the company hasn't missed the EPS mark since 2020. Just a few short weeks ago, Howmet delivered first-quarter earnings of 86 cents per share, which marked an 11.6% surprise over the 77-cent consensus estimate. Total revenues of $1.94 billion also exceeded projections and jumped 6% from the year-ago quarter. The aerospace and defense leader delivered a trailing four-quarter average earnings surprise of 8.8%. Consistently beating earnings estimates is a recipe for success. Following the strong performance, Howmet raised its 2025 adjusted EPS outlook, reflecting confidence in its operational execution and exposure to flourishing aerospace markets. The company increased its full-year EPS guidance to a range of $3.36-$3.44 compared with $3.13-$3.21 expected earlier. Howmet continues to witness rising earnings estimates as the company benefits from momentum in the commercial aerospace market. Analysts covering HWM increased their full-year EPS estimates by 6.13% in the past 60 days. The 2025 Zacks Consensus Estimate now stands at $3.46/share, translating to a healthy 28.6% growth rate versus last year. Image Source: Zacks Investment Research This market leader has seen its stock advance more than 50% already this year, all while the general market witnessed a drastic correction. Only stocks that are in extremely powerful uptrends are able to experience this type of outperformance. This is the kind of stock we want to include in our portfolio – one that is trending well and receiving positive earnings estimate revisions. Image Source: StockCharts Notice how both the 50-day (blue line) and 200-day (red line) moving averages are sloping up. The stock has been making a series of higher highs throughout the past year. With both strong fundamental and technical indicators, HWM stock is poised to continue its outperformance. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. As we know, Howmet has recently witnessed positive revisions. As long as this trend remains intact (and Howmet continues to deliver earnings beats), the stock will likely continue its bullish run. Howmet's measures to reward shareholders are encouraging. In the first quarter of 2025, the company paid dividends of $42 million and repurchased shares worth $125 million. Its sound liquidity position is an added positive. Backed by a leading industry group and history of earnings beats, it's not difficult to see why HWM stock is a compelling investment. Robust fundamentals combined with an appealing technical trend certainly justify adding shares to the mix. Recent positive earnings estimate revisions should also serve to create a 'floor' in terms of any sudden or unexpected downside moves. If you haven't already done so, be sure to put HWM on your shortlist. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Howmet Aerospace Inc. (HWM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
05-06-2025
- Business
- Yahoo
Howmet's Commercial Aerospace Growth Picks Up: A Sign of More Upside?
Howmet Aerospace Inc. HWM continues to strengthen its position in the commercial aerospace market, which remains its primary growth driver at the sustained strength reflects solid momentum in global air travel, which persisted through 2024 and continues into 2025. This strength in the commercial aerospace market has been driven by an increase in wide-body aircraft orders, encouraging original equipment manufacturers (OEMs) to increase their spending levels. For Howmet, this trend is particularly beneficial as higher aircraft utilization drives greater demand for maintenance parts and products that it produces. In the first quarter of 2025, revenues from the commercial aerospace market rose 9% year over year, constituting 52% of HWM's total are investing heavily in greener technologies as sustainability has become a key focus in aviation. The rise in HWM's revenues was attributed to growing popularity for new, more fuel-efficient aircraft, which, in turn, increased demand for its engine spares. Howmet remains well-positioned to capitalize on the favorable market dynamics, with the commercial aerospace sector continuing to demonstrate resilience and growth. Despite strong year-over-year growth, the commercial aerospace market has been facing a few challenges. The recovery in Boeing 787 and Airbus A350 production has been slower than expected due to delays and supply-chain disruptions. Among its major peers, RTX Corporation RTX reported 8% organic sales growth in the first quarter of 2025. This growth was largely driven by strength in the commercial aerospace market, where RTX Corp. saw double-digit gains in aftermarket sales and low-single-digit growth in OEM sales. The improvement in commercial aerospace sales boosted RTX's Collins Aerospace and Pratt & Whitney segments. Rising aircraft utilization and demand for sustainable technologies are supporting RTX Corp.'s Aerospace GE is benefiting from solid demand for LEAP, GEnx & GE9X engines and services within the Commercial Engines & Services business. This growth is supported by increasing air traffic, fleet renewal and expansion activities. During the first quarter of 2025, GE Aerospace signed new deals with three major customers. ANA Holdings ordered more than 75 LEAP engines and selected GE to supply GEnx engines for 18 new Boeing 787 aircraft. Malaysia Aviation Group placed an order for 60 LEAP engines and spare parts for its Boeing 737 MAX planes. GE Aerospace also received an order from Korean Air for GEnx and GE9X engines to power up to 50 wide-body Boeing jets. These contracts underscore GE's role in driving the growth of the commercial aerospace market globally. Shares of Howmet have surged 104% in the past year compared with the industry's growth of 19.9%. Image Source: Zacks Investment Research From a valuation standpoint, HWM is trading at a forward price-to-earnings ratio of 46.12X, above the industry's average of 26.59X. Image Source: Zacks Investment Research The Zacks Consensus Estimate for HWM's earnings has been on the rise over the past 60 days. Image Source: Zacks Investment Research The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report GE Aerospace (GE) : Free Stock Analysis Report Howmet Aerospace Inc. (HWM) : Free Stock Analysis Report RTX Corporation (RTX) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
