The most recent trading session ended with Howmet (HWM) standing at $109.35, reflecting a +1.54% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily loss of 0.09%. Meanwhile, the Dow gained 0.04%, and the Nasdaq, a tech-heavy index, lost 0.1%.
Shares of the maker of engineered products for the aerospace and other industries witnessed a loss of 8.81% over the previous month, trailing the performance of the Aerospace sector with its loss of 3.26% and the S&P 500's loss of 0.29%.
Investors will be eagerly watching for the performance of Howmet in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.71, signifying a 33.96% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $1.87 billion, showing an 8.07% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.66 per share and a revenue of $7.41 billion, representing changes of +44.57% and +11.59%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Howmet. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.03% upward. Howmet is currently a Zacks Rank #3 (Hold).
In terms of valuation, Howmet is currently trading at a Forward P/E ratio of 40.43. This valuation marks a premium compared to its industry's average Forward P/E of 18.1.
We can additionally observe that HWM currently boasts a PEG ratio of 1.45. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Aerospace - Defense industry had an average PEG ratio of 1.62.
The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 136, which puts it in the bottom 46% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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