Howmet (HWM) Falls More Steeply Than Broader Market: What Investors Need to Know

Company Performance - Howmet (HWM) closed at $176.22, down 5.32% from the previous trading session, underperforming the S&P 500's loss of 0.11% [1] - Over the past month, Howmet's shares have increased by 7.81%, while the Aerospace sector and S&P 500 gained 5.27% and 5.17%, respectively [1] Earnings Expectations - The upcoming earnings report is expected to show an EPS of $0.87, representing a 29.85% increase year-over-year [2] - Revenue is anticipated to be $1.99 billion, indicating a 5.92% increase compared to the same quarter last year [2] - For the full year, earnings are projected at $3.47 per share and revenue at $8.06 billion, reflecting changes of +29% and +8.48% from the previous year [3] Analyst Estimates and Ratings - Recent adjustments to analyst estimates for Howmet are being monitored, as upward revisions indicate positive sentiment regarding the company's business operations [4] - The Zacks Rank system, which evaluates estimate changes, currently ranks Howmet as 1 (Strong Buy), with a historical average annual return of +25% for this rating since 1988 [6] Valuation Metrics - Howmet has a Forward P/E ratio of 53.7, which is a premium compared to the industry average Forward P/E of 24.45 [7] - The company has a PEG ratio of 2.82, higher than the Aerospace - Defense industry's average PEG ratio of 2 [7] Industry Context - The Aerospace - Defense industry, which includes Howmet, has a Zacks Industry Rank of 53, placing it in the top 22% of over 250 industries [8] - Strong individual industry groups, as measured by the Zacks Industry Rank, tend to outperform weaker groups by a factor of 2 to 1 [8]