Howmet (HWM) Declines More Than Market: Some Information for Investors

Company Performance - Howmet (HWM) stock closed at $210.90, reflecting a -1.77% change from the previous day's closing price, which is less than the S&P 500's daily loss of 0.34% [1] - In the past month, Howmet's shares have gained 12.19%, outperforming the Aerospace sector's gain of 9.73% and the S&P 500's gain of 1.19% [2] Earnings Forecast - Howmet is expected to report an EPS of $0.96, indicating a 29.73% increase from the same quarter last year, with projected net sales of $2.12 billion, up 12.22% year-over-year [3] - For the full year, earnings are projected at $3.69 per share and revenue at $8.21 billion, representing a 37.17% increase in earnings and no change in revenue from the prior year [4] Analyst Estimates and Valuation - Recent changes in analyst estimates for Howmet are seen as a positive indicator for business outlook, with the Zacks Consensus EPS estimate having moved 0.05% lower in the past month [4][6] - Howmet is currently trading at a Forward P/E ratio of 48.64, significantly higher than the industry average of 22.82, indicating a premium valuation [7] - The company has a PEG ratio of 2.05, compared to the Aerospace - Defense industry's average PEG ratio of 1.79, suggesting that Howmet's valuation is higher relative to its expected earnings growth [8] Industry Context - The Aerospace - Defense industry, which includes Howmet, has a Zacks Industry Rank of 106, placing it in the top 44% of over 250 industries, indicating strong performance potential [8]