Core Insights - Howmet (HWM) is expected to report quarterly earnings of $0.65 per share, a 41.3% increase year-over-year, with revenues projected at $1.85 billion, reflecting an 11.8% year-over-year growth [1] - The consensus EPS estimate has been revised upward by 0.2% in the last 30 days, indicating analysts' reassessment of their initial estimates [2] - Analysts emphasize the importance of earnings estimate revisions as indicators for predicting investor actions and stock price performance [3] Revenue Estimates - Total Sales for Engine Products are forecasted to reach $944.77 million, representing a 17.7% year-over-year increase [4] - Total Sales for Fastening Systems are expected to be $385.76 million, indicating a 10.9% year-over-year growth [5] - Total Sales for Engineered Structures are projected at $270.33 million, reflecting a 19.1% year-over-year increase [5] - Total Sales for Forged Wheels are estimated at $257.60 million, suggesting a 9.6% year-over-year decline [5] End Market Revenue Estimates - End Market Revenue for Aerospace-Commercial is expected to be $997.87 million, indicating a 21.7% year-over-year increase [6] - End Market Revenue for Aerospace-Defense is projected at $291.67 million, reflecting a 16.2% year-over-year growth [6] - End Market Revenue for Commercial Transportation is estimated at $319.48 million, suggesting a 9.2% year-over-year decline [7] - End Market Revenue for Industrial and Other is expected to reach $255.43 million, indicating an 8.7% year-over-year increase [7] Adjusted EBITDA Estimates - Adjusted EBITDA for Engine Products is projected at $291.12 million, up from $219 million in the same quarter last year [8] - Adjusted EBITDA for Forged Wheels is expected to be $66.07 million, down from $77 million year-over-year [8] - Adjusted EBITDA for Engineered Structures is forecasted at $39.00 million, compared to $30 million in the prior year [9] - Adjusted EBITDA for Fastening Systems is estimated at $98.18 million, up from $76 million year-over-year [9] Stock Performance - Shares of Howmet have experienced a -1% change in the past month, mirroring the -1% movement of the S&P 500 composite [9][10] - Howmet holds a Zacks Rank 3 (Hold), indicating expected performance in line with the overall market [10]

In the latest market close, Howmet (HWM) reached $101.14, with a +1.05% movement compared to the previous day. The stock outpaced the S&P 500's daily loss of 0.33%. Elsewhere, the Dow lost 0.22%, while the tech-heavy Nasdaq lost 0.56%. Shares of the maker of engineered products for the aerospace and other industries witnessed a loss of 0.82% over the previous month, beating the performance of the Aerospace sector with its loss of 6.93% and underperforming the S&P 500's gain of 1.83%. Investors will be eager ...

Group 1: Investment Activity - Michael McCaul, a congressional representative, invested between $100,001 and $250,000 in Howmet Aerospace (NYSE: HWM) on September 16, when shares were priced at $94.59 [1] - Since McCaul's purchase, HWM shares have increased by 10.12%, and the Congressman could potentially gain between $10,120 and $25,300 from this trade [1][2] Group 2: Company Overview - Howmet Aerospace is a significant supplier for major contractors, including Lockheed Martin (NYSE: LMT), providing titanium and involved in a legal dispute over supply prices settled on May 3 [2] - The company is not a direct defense contractor but benefits from increased defense spending amid geopolitical instability and upcoming elections [2] Group 3: Market Sentiment and Analyst Ratings - Wall Street analysts are cautiously optimistic about HWM, with a consensus rating of 'Strong Buy' from 17 equity researchers [4] - Deutsche Bank analyst Scott Deuschle raised the price target for HWM from $106 to $125, anticipating an earnings beat and increased guidance in the upcoming earnings call on November 6 [4] - The average price target for HWM is $109.36, indicating a potential increase of 5.24% from the current share price [4]

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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]