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Here's Why Investors Should Consider Investing in Howmet Stock Now
HWMHowmet Aerospace(HWM) ZACKS·2025-03-05 16:55

Core Viewpoint - Howmet Aerospace Inc. (HWM) is positioned to benefit from strong momentum across its businesses, operational excellence, and a healthy liquidity position, while focusing on growth opportunities and long-term market strength [1] Group 1: Market Performance - The commercial aerospace market is experiencing persistent strength, with revenues increasing by 12.9% year over year in Q4 2024, making up 53% of HWM's business [2] - The defense aerospace sector is also showing positive momentum, with revenues rising by 22% year over year in Q4, accounting for 16% of the company's business [3] Group 2: Financial Position - HWM has a strong liquidity position, with cash equivalents and receivables totaling 564millionagainstshorttermmaturitiesofonly564 million against short-term maturities of only 6 million, indicating sufficient cash to meet current debt obligations [4] Group 3: Shareholder Value - The company is committed to enhancing shareholder value through dividends and share repurchases, having paid 109millionindividendsandrepurchased109 million in dividends and repurchased 500 million in shares in 2024, with a 60% dividend increase announced in July 2024 [5] Group 4: Stock Performance and Estimates - Year-to-date, HWM's shares have increased by 16.1%, outperforming the industry growth of 1.5% [7] - The Zacks Consensus Estimate for HWM's 2025 earnings is 3.23pershare,reflectinga1.93.23 per share, reflecting a 1.9% increase from the previous estimate, while the 2026 earnings estimate is 3.99 per share, up by 0.5% from the year-ago period [7]