Core Insights - Howmet Aerospace Inc. (HWM) is experiencing strong momentum in the commercial aerospace market, driven by increased air travel and demand for wide-body aircraft, which supports Original Equipment Manufacturer (OEM) spending [1] - The defense sector is also showing positive trends, with robust orders for engine spares related to the F-35 program and legacy fighters, contributing to a 14% year-over-year revenue increase to $1.88 billion in Q2 2024 [2] Financial Performance - HWM's liquidity position is strong, with cash equivalents and receivables totaling $1.52 billion against short-term maturities of $782 million, and a free cash flow of $437 million generated in the first half of the year [3] - In the first six months of 2024, the company paid out $42 million in dividends and repurchased shares worth $210 million, with a 60% dividend increase to 8 cents per share announced in July 2024 [4] Market Trends - Despite the positive performance in commercial aerospace, HWM is facing challenges in the commercial transportation market, with a 4% year-over-year revenue decline in Q2 2024 and expectations of continued demand decline in the second half of 2024 [6] - The company is also dealing with rising costs, with the cost of goods sold increasing by 9.2% to $2.6 billion in the first half of 2024, and selling, general, and administrative expenses rising by 13.5% to $185 million [7]

Stock Performance - Howmet's stock ended at $102 99, marking a +0 16% increase from the previous day's close [1] - The stock underperformed compared to the S&P 500 (+0 97%), Dow (+0 3%), and Nasdaq (+1 45%) [1] - Over the past month, Howmet's shares gained 9 76%, outperforming the Construction sector (+8 21%) and the S&P 500 (+5 41%) [2] Earnings and Revenue Projections - The company's upcoming earnings report is expected to show an EPS of $0 66, a 43 48% increase from the same quarter last year [3] - Revenue is projected to be $1 85 billion, up 11 83% year-over-year [3] - For the annual period, EPS is estimated at $2 59 (+40 76% YoY) and revenue at $7 47 billion (+12 54% YoY) [4] Analyst Revisions and Zacks Rank - Recent upward revisions in analyst estimates reflect positivity towards the company's business operations and profitability [5] - The Zacks Rank system, which integrates estimate changes, has a strong track record, with 1-ranked stocks averaging +25% annual returns since 1988 [7] - Howmet currently holds a Zacks Rank of 2 (Buy), with the consensus EPS estimate increasing by 0 18% over the last 30 days [7] Valuation Metrics - Howmet is trading at a Forward P/E ratio of 39 63, higher than the industry average of 21 16 [8] - The company's PEG ratio is 1 49, slightly below the industry average of 1 54 [8] Industry Overview - The Engineering - R and D Services industry, part of the Construction sector, has a Zacks Industry Rank of 64, placing it in the top 26% of all industries [9] - Industries in the top 50% of the Zacks Industry Rank outperform the bottom half by a factor of 2 to 1 [9]

Core Viewpoint - Howmet (HWM) is well-positioned to continue its earnings-beat streak, having consistently surpassed earnings estimates in recent quarters [1][3]. Earnings Performance - In the most recent quarter, Howmet reported earnings of $0.67 per share, exceeding the expected $0.60 per share by 11.67%. In the previous quarter, it reported $0.57 per share against an expectation of $0.52 per share, resulting in a surprise of 9.62% [2]. Earnings Estimates and Predictions - There has been a favorable change in earnings estimates for Howmet, with a positive Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of an earnings beat. The current Earnings ESP stands at +3.54% [3][6]. - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have historically produced a positive surprise nearly 70% of the time, suggesting a high probability of beating consensus estimates [4]. Zacks Rank and Earnings ESP - Howmet currently holds a Zacks Rank of 2 (Buy), which, when combined with its positive Earnings ESP, indicates a strong potential for another earnings beat [6]. - The Earnings ESP metric is based on the Most Accurate Estimate compared to the Zacks Consensus Estimate, reflecting the latest analyst revisions and information [5].

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. Eve ...

Have you been paying attention to shares of Howmet (HWM) ? Shares have been on the move with the stock up 11.6% over the past month. The stock hit a new 52-week high of $103 in the previous session. Howmet has gained 88.5% since the start of the year compared to the 22.7% move for the Zacks Construction sector and the 41.3% return for the Zacks Engineering - R and D Services industry. What's Driving the Outperformance? The stock has a great record of positive earnings surprises, as it hasn't missed our earn ...

Company Performance - Howmet's stock closed at $99.30, reflecting a -0.42% change from the previous day, underperforming the S&P 500's gain of 0.4% [1] - Over the past month, Howmet's stock has increased by 3.32%, outperforming the Construction sector's gain of 2.56% and the S&P 500's gain of 1.71% [1] Upcoming Earnings - Analysts expect Howmet to report earnings of $0.65 per share, indicating a year-over-year growth of 41.3% [2] - The consensus estimate for revenue is projected at $1.86 billion, representing an 11.89% increase compared to the same quarter last year [2] Full Year Projections - For the full year, earnings are projected at $2.59 per share and revenue at $7.48 billion, reflecting changes of +40.76% and +12.58% from the prior year, respectively [3] Analyst Estimates - Recent changes in analyst estimates for Howmet are crucial as they indicate shifts in near-term business trends, with positive revisions suggesting analyst optimism [4] Zacks Rank - Howmet currently holds a Zacks Rank of 2 (Buy), with the Zacks Rank system showing an impressive track record of outperformance [6] Valuation Metrics - Howmet's Forward P/E ratio stands at 38.51, significantly higher than the industry average of 21.63, indicating a premium valuation [7] - The company has a PEG ratio of 1.49, compared to the industry average PEG ratio of 1.59, suggesting a favorable growth outlook relative to its valuation [8] Industry Context - The Engineering - R and D Services industry, to which Howmet belongs, has a Zacks Industry Rank of 94, placing it in the top 38% of over 250 industries [9]

Investors might want to bet on Howmet (HWM) , as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices. The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate. The power of a changing ...

The latest trading session saw Howmet (HWM) ending at $95.28, denoting a +1.11% adjustment from its last day's close. The stock outperformed the S&P 500, which registered a daily gain of 0.54%. Meanwhile, the Dow experienced a rise of 0.72%, and the technology-dominated Nasdaq saw an increase of 0.65%. Prior to today's trading, shares of the maker of engineered products for the aerospace and other industries had lost 1.41% over the past month. This has lagged the Construction sector's gain of 5.07% and the ...

It has been about a month since the last earnings report for Howmet (HWM) . Shares have added about 0.9% in that time frame, underperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Howmet due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. Howmet Q2 Earnings Beat Estimates, Revenues Increase ...

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Howmet (HWM), and suggests that while the average brokerage recommendation (ABR) indicates a strong buy, investors should not rely solely on this information for investment decisions [1][3]. Group 1: Brokerage Recommendations - Howmet has an average brokerage recommendation (ABR) of 1.35, indicating a position between Strong Buy and Buy, based on recommendations from 20 brokerage firms [2]. - Out of the 20 recommendations, 17 are Strong Buy and 1 is Buy, which means Strong Buy and Buy account for 85% and 5% of all recommendations respectively [2]. - Despite the positive ABR, studies show limited success of brokerage recommendations in guiding investors to select stocks with the best price increase potential [3][4]. Group 2: Analyst Bias and Alternative Measures - Brokerage analysts often exhibit a strong positive bias due to vested interests, leading to a disproportionate number of Strong Buy recommendations compared to Strong Sell [4][8]. - The Zacks Rank, a proprietary stock rating tool, categorizes stocks based on earnings estimate revisions and has a strong track record in predicting stock price performance [6][9]. - The Zacks Rank is distinct from ABR, as it is based on quantitative models and is updated more frequently to reflect changes in earnings estimates [7][10]. Group 3: Current Earnings Estimates for Howmet - The Zacks Consensus Estimate for Howmet has increased by 8.5% over the past month to $2.56, indicating growing optimism among analysts regarding the company's earnings prospects [11]. - The recent change in the consensus estimate, along with other factors, has resulted in a Zacks Rank 1 (Strong Buy) for Howmet, suggesting a potential for stock price appreciation [12].