3 Reasons Growth Investors Will Love Howmet (HWM)

Core Viewpoint - Investors are seeking growth stocks that demonstrate above-average growth potential, with Howmet (HWM) being highlighted as a strong candidate due to its favorable growth metrics and Zacks Rank [2][11]. Group 1: Earnings Growth - Howmet has a historical EPS growth rate of 30.1%, with projected EPS growth of 32.8% for the current year, significantly outperforming the industry average of 18.9% [5]. - Earnings growth is a critical factor for attracting investor interest, particularly double-digit growth which indicates strong future prospects [4]. Group 2: Asset Utilization - Howmet's asset utilization ratio (sales-to-total-assets ratio) stands at 0.72, indicating that the company generates $0.72 in sales for every dollar in assets, surpassing the industry average of 0.58 [6]. Group 3: Sales Growth - The company's sales are projected to grow by 9.3% this year, compared to the industry average of 3.1%, highlighting its strong sales growth potential [7]. Group 4: Earnings Estimate Revisions - The current-year earnings estimates for Howmet have been revised upward, with the Zacks Consensus Estimate increasing by 2.4% over the past month, indicating positive momentum [9]. Group 5: Overall Assessment - Howmet has achieved a Growth Score of B and a Zacks Rank of 2, suggesting it is a solid choice for growth investors and a potential outperformer in the market [11].