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Strength in Aerospace Market Drives Howmet: Will the Momentum Last?
ZACKS· 2025-07-14 15:36
Key Takeaways HWM's defense aerospace revenue rose 19% in Q1 2025, making up 17% of its total sales. F-35 engine spares and fighter jet part orders drove a 36% defense boost in Engineered Structures. The $852.2B U.S. defense budget for FY25 supports continued growth in HWM's defense aerospace market.Howmet Aerospace Inc.’s (HWM) defense aerospace market is playing an important role in driving its overall growth. In the first quarter of 2025, the company’s revenues from the defense aerospace market jumped ...
3 Top-Ranked U. S. Corporate Behemoths That Have Soared Year to Date
ZACKS· 2025-07-14 13:50
Market Overview - Wall Street reached record-high levels despite a turbulent first half of 2025, with the second quarter being the best for U.S. stocks in the past year, driven by expectations of key trade deals and reduced recession fears [1] - The Federal Reserve indicated two more cuts in the benchmark lending rate for the second half of the year, contributing to the ongoing bull run in U.S. stock markets, with the S&P 500 and Nasdaq Composite hitting all-time highs [2] Company Highlights HEICO Corp. (HEI) - HEICO is experiencing increased orders for aftermarket replacement parts and repair services, supported by rising air travel and solid U.S. defense funding, which is expected to enhance order flows for its defense products [6][7] - The company has an expected revenue growth rate of 13.3% and earnings growth rate of 24.5% for the current year, with a 0.7% improvement in the Zacks Consensus Estimate for current-year earnings over the last week [8] Howmet Aerospace Inc. (HWM) - Howmet Aerospace is benefiting from strong momentum in the commercial aerospace market and robust defense aerospace activity, particularly from the F-35 program [11][12] - The expected revenue growth rate for HWM is 8.6% and earnings growth rate is 29% for the current year, with a 0.2% improvement in the Zacks Consensus Estimate for current-year earnings over the last 30 days [12] Interactive Brokers Group Inc. (IBKR) - Interactive Brokers is a global automated electronic broker focusing on proprietary software development and expanding its global footprint, with projected total net revenues seeing a CAGR of 6.5% by 2027 [13] - The expected revenue growth rate for IBKR is 2.9% and earnings growth rate is 4.6% for the current year, with a 4% improvement in the Zacks Consensus Estimate for current-year earnings over the last week [15]
Howmet's Commercial Aerospace Strength Seems Firm: More Upside Ahead?
ZACKS· 2025-07-10 16:50
Core Insights - Howmet Aerospace Inc. (HWM) is experiencing significant growth, particularly in the commercial aerospace sector, which accounted for 52% of total revenues in Q1 2025, with a year-over-year revenue increase of 9% [1][9] Group 1: Commercial Aerospace Market - The demand for wide-body aircraft is rising due to increased air travel, leading original equipment manufacturers (OEMs) to boost their spending [2] - The growth in the commercial aerospace market is also driven by the demand for fuel-efficient aircraft and the recovery of Boeing 737 MAX production, which is expected to enhance demand for HWM's products [3][9] - HWM's peers, such as RTX Corporation and GE Aerospace, are also reporting strong growth in the commercial aerospace market, with RTX achieving 8% organic sales growth and GE benefiting from solid demand for its engines [5][6] Group 2: Defense Aerospace Market - The defense aerospace market is showing positive momentum, driven by increased demand for engine spares, particularly for the F-35 program, and rising military budgets [4] Group 3: Financial Performance - HWM's stock has surged 127.8% over the past year, significantly outperforming the industry average growth of 17.2% [8] - The company is currently trading at a forward price-to-earnings ratio of 47.53X, which is above the industry average of 26.71X [11] - The Zacks Consensus Estimate for HWM's earnings has been increasing over the past 60 days, indicating positive market sentiment [12]
Howmet (HWM) Surges 4.6%: Is This an Indication of Further Gains?
ZACKS· 2025-06-30 14:31
Company Overview - Howmet Aerospace Inc. (HWM) shares increased by 4.6% to $184.9 in the last trading session, with a higher-than-average trading volume [1] - The stock has gained 4% over the past four weeks [1] Market Drivers - The rally in Howmet's stock is driven by optimism regarding strong momentum in the commercial and defense aerospace markets [2] - Robust orders for engine spares for the F-35 program, aerospace fastening systems, and airframe structural components are positive indicators [2] - Howmet has established a strong liquidity position that supports shareholder-friendly policies due to strength in its served markets [2] Earnings Expectations - Howmet is expected to report quarterly earnings of $0.86 per share, reflecting a year-over-year increase of 28.4% [3] - Revenue is anticipated to be $1.99 billion, which is a 5.9% increase from the same quarter last year [3] Stock Performance Insights - Trends in earnings estimate revisions are correlated with near-term stock price movements [4] - The consensus EPS estimate for Howmet has remained unchanged over the last 30 days, indicating that the stock's price may not continue to rise without changes in earnings estimates [5] - Howmet currently holds a Zacks Rank of 1 (Strong Buy) [5] Industry Comparison - Howmet belongs to the Zacks Aerospace - Defense industry, where General Dynamics (GD) closed the last trading session at $290.74, down 0.2% [5] - General Dynamics has seen a 5.9% return over the past month, with a consensus EPS estimate change of +0.3% to $3.47, representing a 6.4% increase year-over-year [6]
Will Increased Military Spending Fuel Howmet's Defense Aerospace Gains?
ZACKS· 2025-06-18 16:26
Key Takeaways HWM's defense aerospace revenues jumped 19% in Q1 2025, fueled by strong demand for engine spares. Defense sales rose 36% in Engineered Structures, lifting the segment's revenues by 8% year over year. The $852.2B U.S. defense budget for FY25 marks a 3.3% increase, supporting HWM's contract opportunities.Howmet Aerospace Inc. (HWM) is benefiting from the expanding defense budget, which remains a key growth catalyst for it. In the first quarter of 2025, revenues from the defense aerospace mark ...
5 Must-Buy Thriving Non-Tech Behemoths of Q1 Set to Tap More Gains
ZACKS· 2025-06-10 12:26
Key Takeaways Howmet Aerospace is riding strong commercial and defense aerospace demand, boosting earnings outlook. Newmont's Newcrest acquisition and Ahafo North development are driving growth and operational synergy. Philip Morris sees innovative products like IQOS and ZYN fueling volume and earnings growth in 2025.U.S. stock markets are back on a northward trajectory after witnessing volatility in the last couple of months. The broad-market benchmark — the S&P 500 — is hovering around its all-time high ...
Buy 5 Aerospace Defense Stocks for Second-Half 2025 on Growing Demand
ZACKS· 2025-05-27 13:01
Industry Overview - The aerospace defense industry is experiencing growth despite supply-chain challenges, driven by increased defense budgets and positive projections for global air passenger numbers in the second half of 2025 [1][3] - A White House report indicates a proposed 13% increase in U.S. defense spending to $1.01 trillion for fiscal year 2026, which is expected to benefit defense-focused companies [4] - The Zacks-defined Aerospace – Defense Industry ranks in the top 16% of Zacks Industry Rank, suggesting it will outperform the market in the next three to six months [5] Company Summaries GE Aerospace - GE Aerospace is seeing strong demand for commercial engines and propulsion technologies, supported by rising defense budgets and geopolitical tensions [8] - The company raised its dividend by 28.6% to 36 cents per share in February 2025, with expected organic revenue growth in the low-double-digit range for 2025 [9] - GE Aerospace has an expected revenue growth rate of -6.8% and an earnings growth rate of 19.6% for the current year [9] Howmet Aerospace Inc. - Howmet Aerospace is benefiting from robust momentum in the commercial aerospace market and strength in its defense business due to rising defense budgets [10] - The company has a strong liquidity position and expects revenue and earnings growth rates of 8.5% and 28.6%, respectively, for the current year [11] Leidos Holdings Inc. - Leidos Holdings reported strong earnings and revenue growth, with increased contract wins from the Pentagon leading to a solid backlog of $46.30 billion [12][14] - The company is well-positioned to contribute to the development of a next-generation missile defense shield, with expected revenue and earnings growth rates of 2.7% and 4.3%, respectively, for the current year [14] Huntington Ingalls Industries Inc. - Huntington Ingalls is a leading U.S. shipbuilder with a solid order backlog, driven by strong demand for its nuclear-powered aircraft carriers and submarines [15][16] - The company expects revenue and earnings growth rates of 3.3% and 2.5%, respectively, for the current year [17] Vertical Aerospace Ltd. - Vertical Aerospace is focused on designing and manufacturing zero-emission electric vertical takeoff and landing (eVTOL) aircraft, with significant growth potential in the advanced air mobility market [18] - The company has an expected revenue growth rate of 1% and an earnings growth rate of over 100% for the current year [19]