Howmet Aerospace Inc. (HWM), headquartered in Pittsburgh, Pennsylvania, provides advanced engineered solutions for the aerospace and transportation industries. Valued at $101.8 billion by market cap, the company offers engines, fasteners, and structures, as well as forged wheels.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and HWM perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the aerospace & defense industry. HWM’s specialization in lightweight metals engineering and manufacturing has solidified its position as a key supplier for aircraft engines and turbines. Through cutting-edge products like advanced airfoils and specialized fasteners, HWM meets the rigorous standards of the aerospace industry, leading to improved performance and efficiency.
Despite its notable strength, HWM slipped 5% from its 52-week high of $267.31, achieved on Mar. 2. Over the past three months, HWM stock has gained 32%, outperforming the Industrial Select Sector SPDR Fund’s (XLI) 9% gains during the same time frame.
Shares of HWM rose 23.9% on a YTD basis and climbed 107.6% over the past 52 weeks, notably outperforming XLI’s YTD gains of 9.6% and 28.7% returns over the last year.
To confirm the bullish trend, HWM has been trading above its 50-day and 200-day moving averages over the past year, experiencing slight fluctuations.
On Feb. 12, HWM shares closed up more than 6% after reporting its Q4 results. Its adjusted EPS of $1.05 beat Wall Street expectations of $0.97. The company’s revenue was $2.2 billion, beating Wall Street forecasts of $2.1 billion. HWM expects full-year adjusted EPS in the range of $4.35 to $4.55, and revenue ranging from $9 billion to $9.2 billion.
HWM’s rival, TransDigm Group Incorporated (TDG) shares significantly lagged behind the stock, with a 4.6% downtick on a YTD basis and 5.1% losses over the past 52 weeks.
Wall Street analysts are bullish on HWM’s prospects. The stock has a consensus “Strong Buy” rating from the 23 analysts covering it, and the mean price target of $278.30 suggests a potential upside of 9.6% from current price levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
