Howmet Aerospace Inc. (HWM) Hits Fresh High: Is There Still Room to Run?

Company Performance - Howmet (HWM) shares have increased by 10% over the past month and reached a new 52-week high of $140.55 [1] - Year-to-date, Howmet has gained 27.5%, outperforming the Zacks Aerospace sector's 0.9% and the Zacks Aerospace - Defense industry's 0.7% [1] Earnings and Revenue - Howmet has consistently exceeded earnings estimates, reporting EPS of$ 0.74 against a consensus estimate of $0.72 in its last earnings report [2] - For the current fiscal year, Howmet is projected to achieve earnings of$ 3.22 per share on revenues of $8.07 billion, reflecting a 19.7% increase in EPS and an 8.65% increase in revenues [3] - The next fiscal year is expected to see earnings of$ 4.03 per share on $9.07 billion in revenues, indicating year-over-year changes of 25.27% and 12.41%, respectively [3] Valuation Metrics - Howmet's current trading metrics show a P/E ratio of 43.3X for the current fiscal year EPS estimates, significantly higher than the peer industry average of 17X [7] - The stock trades at a trailing cash flow basis of 40.9X compared to the peer group's average of 14X, with a PEG ratio of 1.96 [7] - Howmet has a Value Score of D, while its Growth and Momentum Scores are both A, resulting in a VGM Score of B [6] Zacks Rank - Howmet holds a Zacks Rank of 2 (Buy), supported by rising earnings estimates, indicating potential for further gains [8] Industry Comparison - The Aerospace - Defense industry is performing well, ranking in the top 32% of all industries, providing favorable conditions for both Howmet and its peer, RTX Corporation [11] - RTX Corporation also has a Zacks Rank of 2 (Buy) and shows strong earnings performance, with expected earnings of$ 6.13 per share on revenues of $84.28 billion for the current fiscal year [10]