Company Performance - Howmet Aerospace Inc. (HWM) shares have surged 96.1% in the past year, significantly outperforming the industry and the S&P 500, which returned 4.9% and 8.1%, respectively [1] - The stock closed at $124.47, trading below its 52-week high of $140.55 but above its 52-week low of $62.80, indicating solid upward momentum and price stability [3] Market Drivers - The commercial aerospace market is the strongest driver of Howmet's business, with air travel demand continuing to rise through 2024, particularly for wide-body aircraft [5][8] - Revenues from the commercial aerospace market increased 12.9% year over year in Q4 2024, constituting 53% of Howmet's business, driven by demand for new, fuel-efficient aircraft [9] - The defense business is also experiencing positive momentum, with revenues increasing 22% year over year in Q4, making up 16% of the company's business [10] Financial Outlook - Howmet expects to generate revenues in the range of $7.93-$8.13 billion in 2025, indicating year-over-year growth of 8% at the midpoint [12] - The Zacks Consensus Estimate for Howmet's 2025 earnings has increased 1.6% to $3.25 per share, reflecting a year-over-year growth of 20.8% [16] Shareholder Returns - Howmet is committed to rewarding shareholders, having paid dividends worth $109 million and repurchased shares for $500 million in 2024 [13] - In January 2025, the company increased its dividend by 25% to 10 cents per share, and in July 2024, it approved an increase in the share repurchase program by $2 billion [13] Competitive Landscape - Howmet operates in a highly competitive aerospace and defense market, with peers like GE Aerospace and Textron also being significant players [15] - The company faces near-term concerns due to weakness in the commercial transportation market and production issues at Boeing [14]

For those looking to find strong Aerospace stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Howmet (HWM) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.Howmet is a member of our Aerospace group, which includes 53 different companies and currently sits at #3 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks with ...

Core Insights - Recent economic uncertainty has slowed demand for new airplanes, but a midday tariff reprieve has positively impacted the stocks of commercial aerospace suppliers, with Boeing, Howmet Aerospace, GE Aerospace, and RTX seeing significant gains [1] - Boeing has faced challenges over the past five years due to engineering mishaps and regulatory scrutiny, affecting its delivery capabilities and supply chain [2] - Signs of recovery are emerging for Boeing, with 130 airplane deliveries in Q1, including 41 in March, compared to 83 in the same quarter last year and 29 in March 2024, alongside a backlog of 4,277 future orders [3] Industry Analysis - The aerospace industry is cyclical, and while airlines are cautious, they are not deferring orders significantly despite the current economic environment [4] - U.S. tariff policy remains a significant uncertainty, with potential impacts on consumer health and travel demand, which could influence airlines' order decisions [5] - For long-term investors, suppliers like Howmet, GE Aerospace, and RTX are seen as attractive candidates, while Boeing's recovery is expected to take years [6]

Investment Rating - The report suggests a positive outlook for the aerospace and defense sectors, highlighting potential investment opportunities in companies like Howmet Aerospace, Loar Holdings, and Raytheon Technologies [6][7]. Core Insights - The AI data center sector is experiencing significant investment, with major companies like Microsoft and Meta planning to invest over $345 billion in AI infrastructure by 2025, indicating a potential bubble in the market [2][23]. - The aerospace industry is showing signs of recovery, with Airbus delivering approximately 70 aircraft in March, reflecting an 11% year-on-year increase [29]. - The defense sector is witnessing substantial contracts, such as Lockheed Martin receiving a $4.94 billion contract for precision strike missiles, indicating strong government spending in defense [35]. Summary by Sections Global Market Review - The U.S. stock market has shown a cautious sentiment, with the S&P 500 index declining over 1% recently, reflecting a risk-off attitude among investors [13]. Infrastructure - The AI data center sector is facing risks of overheating, with significant investments planned by major tech companies [23]. - The PJM Interconnection has released a reliability resource plan to ensure new power plants can connect to the grid efficiently [26]. - Poland is advised to delay the closure of coal plants to avoid a power shortage by 2030 [27]. Industrial Equipment - The price index for electric motors and generators in the U.S. has shown a year-on-year increase of 26% [20]. - China's transformer exports in early 2025 saw a significant increase of 48% year-on-year, indicating strong demand [57]. Energy - U.S. electricity prices have decreased by 35.5% recently, while the market for natural gas is showing mixed signals [5]. - The average spot price for uranium in the global market has decreased by 7.9% month-on-month [4]. Aerospace - The price index for aircraft engines and components has remained stable, with a year-on-year increase of 6.2% [31]. - The aerospace sector is actively pursuing sustainable development, facing challenges in achieving net-zero emissions [29]. Defense - The U.S. government defense spending price index has shown a year-on-year increase of 2.1% [36]. - The defense industry is experiencing a surge in contract awards, particularly in precision strike and unmanned systems [35].

Defense and aerospace stocks have had a fairly strong first quarter of 2025. As of March 31, the benchmark iShares U.S. Aerospace & Defense ETF BATS: ITA has climbed 17% in the last year and nearly 6% year-to-date (YTD), beating the S&P 500 over both timeframes given the recent correction. But some individual names within the industry have outshone the benchmark, leading the way amid speculation that the Trump administration will lead to favorable regulatory and spending trends for defense. Howmet Aerospace ...

Howmet (HWM) closed at $132.43 in the latest trading session, marking a -1.27% move from the prior day. This change lagged the S&P 500's daily loss of 0.33%. Meanwhile, the Dow experienced a drop of 0.37%, and the technology-dominated Nasdaq saw a decrease of 0.53%.Shares of the maker of engineered products for the aerospace and other industries witnessed a gain of 1.64% over the previous month, trailing the performance of the Aerospace sector with its gain of 4.54% and outperforming the S&P 500's loss of 4 ...

Group 1 - Howmet Aerospace is positioned for stability and consistent performance, with shares more than doubling in 2024 [1] - The company manufactures fasteners and engineered products for major industrial clients like Boeing and Airbus, benefiting from the demand for newer, fuel-efficient aircraft [2] - Spare part sales are a significant and profitable segment, driven by airlines' reliance on existing fleets due to Boeing's production challenges [3] Group 2 - In 2024, Howmet achieved a 12% year-over-year revenue growth and generated nearly $1 billion in free cash flow, allowing for stock repurchases, dividends, and debt reduction [4] - The company invests in R&D for lightweight materials and serves energy-generation markets, which may see increased demand from AI data centers [5] - Despite facing cyclical industry challenges and supply chain disruptions, Howmet's strong management and historical resilience position it well for future stability [6][7]

Group 1 - Howmet Aerospace (NYSE: HWM) is positioned to benefit from multiple megatrends in the coming years, particularly in the commercial aerospace sector and the increasing demand for industrial gas turbines [1] - The company is expected to realize durable growth as the commercial aerospace market improves [1] - There is a growing demand for industrial gas turbines, which supports the company's growth potential [1]

Group 1 - Howmet Aerospace Inc. (HWM) has seen a stock price increase of 33.7% over the past six months, significantly outperforming the S&P 500's growth of 0.7% and the aerospace defense industry's decline of 8.5% [1][2] - The stock closed at $126.51, trading below its 52-week high of $140.55 and above its 52-week low of $62.80, indicating solid upward momentum and price stability [3] - The company is benefiting from strong momentum in the commercial aerospace market, with a 12.9% year-over-year revenue increase in this segment, which constitutes 53% of its business [6][7] Group 2 - The defense aerospace market is also performing well, with a 22% year-over-year revenue increase in the fourth quarter, making up 16% of the company's business [8] - The U.S. Senate Committee on Appropriations approved a fiscal year 2025 Defense Appropriations Act providing $852.2 billion in funding, a 3.3% increase from fiscal 2024, which supports Howmet's growth in defense contracts [9] - Howmet expects to generate revenues between $7.93 billion and $8.13 billion in 2025, reflecting an 8% year-over-year growth at the midpoint [10] Group 3 - The company has a strong liquidity position, with cash equivalents and receivables totaling $564 million and a free cash flow of $977 million in 2024 [10] - In 2024, Howmet paid $109 million in dividends and repurchased $500 million in shares, with a 25% dividend increase announced for January 2025 [11] - The Zacks Consensus Estimate for Howmet's 2025 earnings has risen by 3.2% to $3.27 per share, indicating a year-over-year growth of 21.6% [12] Group 4 - Despite positive growth prospects, Howmet's stock is trading at a forward P/E ratio of 37.00X, higher than the industry average of 22.31X, which may pose a valuation concern [13] - The company's strong performance in both commercial and defense aerospace markets positions it favorably for future growth, supported by a solid liquidity position and shareholder-friendly policies [15][16]

Company Performance - Howmet (HWM) closed at $124.40, reflecting a -0.07% change from the previous day, underperforming the S&P 500's gain of 0.55% [1] - Over the past month, Howmet's shares have decreased by 3.5%, which is worse than the Aerospace sector's decline of 3.12% and better than the S&P 500's loss of 5.56% [1] Earnings Expectations - Howmet is expected to report an EPS of $0.77, representing a 35.09% increase from the same quarter last year [2] - Revenue is anticipated to reach $1.93 billion, indicating a 5.87% rise compared to the prior year [2] Annual Projections - For the annual period, earnings are projected at $3.23 per share and revenue at $8.06 billion, reflecting increases of +20.07% and +8.54% respectively from the previous year [3] - Recent changes to analyst estimates for Howmet may indicate a positive outlook for the company's business trends [3] Valuation Metrics - Howmet has a Forward P/E ratio of 38.54, which is a premium compared to the industry's average Forward P/E of 18.63 [6] - The company has a PEG ratio of 1.74, while the Aerospace - Defense industry average PEG ratio is 1.81 [6] Industry Ranking - The Aerospace - Defense industry, part of the Aerospace sector, has a Zacks Industry Rank of 136, placing it in the bottom 46% of over 250 industries [7] - The Zacks Industry Rank measures the strength of industry groups based on the average Zacks Rank of individual stocks, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [7]