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S&P 500 Stock Rockets Late On Earnings As Google Boosts Capex Jets and data centers may not have much in common, but both have been vying for engine blades, vanes and turbines, which has all helped to turbocharge aerospace and defense stock Howmet Aerospace (HWM). The IBD 50 Stocks To Watch pick is setting up, offering an entry on Thursday. Shares triggered a sell signal by falling 8% from a late-stage…
Key Takeaways HWM's commercial aerospace and defense markets fueled strong first-quarter 2026 revenue growth. HWM benefits from aircraft production, defense demand and rising 2026 sales and EPS estimates. LHX posted record backlog and orders, but debt levels and weaker EPS estimate trends remain concerns. Geopolitical instability across the globe has fueled demand for defense equipment and technologies, providing a significant growth tailwind for companies like Howmet Aerospace Inc. (HWM - Free Report) and L3Harris Technologies, Inc. (LHX - Free Report) . These are two familiar names operating in the aerospace and defense industry.
Howmet is a leading manufacturer of components and systems for jet engines and airframes, while L3Harris provides integrated aerospace and defense technologies, including avionics, electronic systems, and command-and-control solutions, to customers in the United States and internationally.
Rising global defense spending and the continued recovery in commercial aviation have boosted investor interest in aerospace companies with defense exposure. But which of these two stocks is better positioned to capitalize on these trends? Let’s compare their fundamentals to find out.
The Case for HowmetHowmet’s strongest growth driver remains the sustained momentum in the commercial aerospace market. In the first quarter of 2026, revenues from this market increased 20% year over year to more than $1.2 billion, accounting for 53% of the company’s total quarterly sales. Healthy global air travel has boosted aircraft utilization, driving demand for replacement parts and components supplied by Howmet.
The favorable market environment benefited Howmet’s Engine Products segment, which reported a 29% year-over-year revenue increase in the first quarter. The continued strength was driven by solid momentum in the commercial aerospace, defense aerospace and gas turbine markets. The Fastening Systems segment recorded 14% revenue growth, benefiting from solid demand in both the commercial and defense aerospace markets.
Also, Boeing is witnessing a gradual production increase, particularly in the 737 MAX widebody aircraft, which is boosting demand for Howmet’s products in the market. Healthy build rates at Airbus for A320 (narrowbody) and A350 (widebody) aircraft also hold promise for HWM’s engine spares demand.
The company is also benefiting from strength in the defense aerospace market. In the first quarter, revenues from this market rose 10% year over year, fueled by higher demand for engine spares related to the F-35 program and increased orders for legacy fighter jet replacement parts.
It's worth noting that the fiscal year 2026 Defense Appropriations Act was signed into law in February 2026, providing a strong budgetary allocation for defense. Such robust provisions set the stage for Howmet, which remains focused on its defense business.
HWM’s measures to reward shareholders are encouraging. In the first three months of 2026, the company paid dividends of $48 million and repurchased shares worth $300 million. In August 2025, the company hiked its dividend by 20% to 12 cents per share (annually: 48 cents), marking its second dividend hike in 2025. Also, in July 2024, its board approved an increase in the share repurchase program by $2 billion to $2.487 billion of its common stock.
The Case for LHXL3Harris is well-positioned to benefit from robust U.S. defense spending, supported by favorable budgetary priorities and rising investments in advanced defense technologies. The fiscal 2027 President's Budget Request, introduced in April 2026, proposed roughly $1.5 trillion in funding for national defense programs, creating a favorable demand environment for the company's Space & Mission Systems, Communications & Spectrum Dominance, and Missile Solutions portfolios.
LHX also remains well aligned with key U.S. defense priorities, including the Golden Dome, missile defense and hypersonic tracking. In the first quarter of 2026, L3Harris generated $7.8 billion in orders, resulting in a robust 1.4x book-to-bill ratio, while its backlog reached a record $40.7 billion, providing strong revenue visibility for future program execution. Strengthening its position further, the company secured a Space Development Agency contract worth up to $843 million to build 18 infrared satellites for the Tranche 3 Tracking Layer, designed to detect and track advanced missile threats.
Also, its Aerojet Rocketdyne subsidiary entered into definitive agreements in April 2026 for a $1.0 billion investment from the U.S. Department of War to expand manufacturing facilities, accelerate research and development, and increase production capacity for critical propulsion and missile technologies.
Beyond the United States, L3Harris continues to benefit from rising defense spending among allied nations. The company is witnessing healthy demand across Europe, the Middle East and the Asia-Pacific region as governments strengthen their defense capabilities. In the first quarter of 2026, the company’s international revenues totaled $1.29 billion, led by the Communications & Spectrum Dominance and Space & Mission Systems.
L3Harris is also sharpening its portfolio while investing in future growth. The company is progressing with the sale of its Space Technology business to AE Industrial Partners for a net enterprise value of $825 million, with the transaction expected to close in the second half of 2026.
Despite these strengths, the company's leveraged balance sheet remains a concern. As of April 3, 2026, L3Harris had $0.59 billion in cash and cash equivalents compared with $9.19 billion in long-term debt.
Also, persistent labor shortages and supply-chain constraints across the aerospace and defense industry continue to pose execution risks, potentially affecting production schedules and timely program deliveries.
The Zacks Consensus Estimate for HWM & LHXThe Zacks Consensus Estimate for HWM’s 2026 sales and earnings per share (EPS) implies year-over-year growth of 18% and 32%, respectively. HWM’s EPS estimates for 2026 have increased over the past 60 days.
Image Source: Zacks Investment Research
The consensus estimate for LHX’s 2026 sales and EPS indicates year-over-year growth of 7.7% and 7.6%, respectively. LHX’s EPS estimates have been trending southward over the past 60 days for 2026.
Image Source: Zacks Investment Research
Price Performance and ValuationIn the past year, Howmet shares have soared 49.6%, while L3Harris stock has gained 3%.
Image Source: Zacks Investment Research
HWM is trading at a forward 12-month price-to-earnings ratio of 50.33X, above its median of 26.43X over the last five years. LHX’s forward earnings multiple sits at 21.98X, above its median of 16.70X over the same time frame.
Image Source: Zacks Investment Research
Final Take on HWM & LHXHowmet is benefiting from sustained strength in both commercial and defense aerospace markets, driven by the recovery in air travel, healthy demand for engine spares and higher defense spending. Backed by solid revenue growth and a strong order pipeline, the company continues to enhance shareholder value through dividends and share repurchases.
L3Harris is well-positioned for long-term growth, supported by its strong presence in both domestic and international defense markets, a record backlog and a robust pipeline of programs. However, ongoing supply-chain constraints, labor shortages and a highly leveraged balance sheet continue to pose challenges to its growth outlook.
Given these factors, HWM seems a better pick for investors than LHX currently. While Howmet currently has a Zacks Rank #2 (Buy), LHX carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Baader Bank Aktiengesellschaft boosted its position in shares of Howmet Aerospace Inc. (NYSE:HWM – Free Report) by 161.4% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 3,205 shares of the company’s stock after acquiring an additional 1,979 shares during the period. Baader Bank Aktiengesellschaft’s holdings in Howmet Aerospace were worth $694,000 as of its most recent SEC filing.
A number of other hedge funds and other institutional investors have also bought and sold shares of the company. Norges Bank bought a new position in Howmet Aerospace during the fourth quarter valued at approximately $1,793,698,000. Price T Rowe Associates Inc. MD boosted its holdings in Howmet Aerospace by 27.0% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 16,632,206 shares of the company’s stock valued at $3,409,936,000 after acquiring an additional 3,531,700 shares during the period. Auto Owners Insurance Co grew its position in Howmet Aerospace by 20,402.0% during the 4th quarter. Auto Owners Insurance Co now owns 1,441,906 shares of the company’s stock worth $29,562,000 after acquiring an additional 1,434,873 shares during the last quarter. Goldman Sachs Group Inc. lifted its position in Howmet Aerospace by 27.8% in the fourth quarter. Goldman Sachs Group Inc. now owns 2,754,204 shares of the company’s stock valued at $564,667,000 after purchasing an additional 599,151 shares during the last quarter. Finally, Franklin Resources Inc. boosted its stake in shares of Howmet Aerospace by 56.3% during the fourth quarter. Franklin Resources Inc. now owns 1,433,811 shares of the company’s stock valued at $293,960,000 after purchasing an additional 516,570 shares during the period. Institutional investors own 90.46% of the company’s stock.
Howmet Aerospace Price Performance NYSE HWM opened at $278.98 on Wednesday. The stock has a market capitalization of $111.62 billion, a price-to-earnings ratio of 64.73, a PEG ratio of 2.14 and a beta of 1.19. Howmet Aerospace Inc. has a 1-year low of $169.45 and a 1-year high of $290.63. The company has a debt-to-equity ratio of 0.73, a current ratio of 2.44 and a quick ratio of 1.59. The business’s fifty day moving average price is $266.46 and its 200-day moving average price is $247.91.
Howmet Aerospace (NYSE:HWM – Get Free Report) last posted its quarterly earnings data on Thursday, May 7th. The company reported $1.22 earnings per share for the quarter, beating analysts’ consensus estimates of $1.11 by $0.11. The firm had revenue of $2.31 billion for the quarter, compared to analysts’ expectations of $2.24 billion. Howmet Aerospace had a return on equity of 29.27% and a net margin of 20.23%.The business’s quarterly revenue was up 19.1% on a year-over-year basis. During the same period in the previous year, the firm earned $0.86 EPS. Howmet Aerospace has set its FY 2026 guidance at 4.880-5.000 EPS and its Q2 2026 guidance at 1.220-1.240 EPS. On average, equities analysts predict that Howmet Aerospace Inc. will post 5.05 earnings per share for the current year.
Howmet Aerospace Dividend Announcement The company also recently declared a quarterly dividend, which was paid on Tuesday, May 26th. Investors of record on Friday, May 8th were paid a dividend of $0.12 per share. The ex-dividend date of this dividend was Friday, May 8th. This represents a $0.48 dividend on an annualized basis and a dividend yield of 0.2%. Howmet Aerospace’s payout ratio is currently 11.14%.
Analyst Ratings Changes A number of research analysts recently issued reports on the company. KeyCorp started coverage on Howmet Aerospace in a report on Wednesday, March 25th. They set a “sector weight” rating on the stock. Sanford C. Bernstein restated an “outperform” rating and set a $318.00 price target on shares of Howmet Aerospace in a research report on Tuesday, June 16th. BNP Paribas Exane reiterated an “outperform” rating and issued a $340.00 price objective (up from $265.00) on shares of Howmet Aerospace in a report on Friday, May 8th. Citigroup upped their target price on shares of Howmet Aerospace from $303.00 to $311.00 and gave the stock a “buy” rating in a research report on Wednesday, July 1st. Finally, Deutsche Bank Aktiengesellschaft reissued a “buy” rating and set a $320.00 price target on shares of Howmet Aerospace in a research report on Friday, May 8th. Eighteen research analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to MarketBeat, Howmet Aerospace currently has an average rating of “Moderate Buy” and an average target price of $293.21.
Check Out Our Latest Research Report on HWM
Insider Activity In other news, EVP Neil Edward Marchuk sold 41,932 shares of the business’s stock in a transaction on Monday, May 11th. The shares were sold at an average price of $269.50, for a total transaction of $11,300,674.00. Following the completion of the sale, the executive vice president directly owned 65,105 shares of the company’s stock, valued at approximately $17,545,797.50. The trade was a 39.18% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 0.85% of the stock is owned by company insiders.
About Howmet Aerospace (Free Report)
Howmet Aerospace Inc is an industrial technology company that designs, manufactures and repairs engineered metal products for the aerospace, transportation and industrial markets. Its product portfolio includes precision castings and forgings, engineered fasteners, seamless rolled rings, and complex components for turbine engines, airframes and industrial gas turbines. The company also provides aftermarket services such as component repair, overhaul and parts distribution to support the operating fleet of commercial and military customers.
Howmet serves a global customer base of original equipment manufacturers (OEMs) and aftermarket operators, with manufacturing, service and distribution facilities across North America, Europe and Asia.
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Howmet (HWM - Free Report) closed the most recent trading day at $279.00, moving +2.58% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.89% for the day. Meanwhile, the Dow experienced a rise of 0.74%, and the technology-dominated Nasdaq saw an increase of 1.29%.
The maker of engineered products for the aerospace and other industries's shares have seen a decrease of 2.99% over the last month, surpassing the Aerospace sector's loss of 6.03% and falling behind the S&P 500's loss of 0.63%.
The investment community will be closely monitoring the performance of Howmet in its forthcoming earnings report. The company is scheduled to release its earnings on August 6, 2026. The company is forecasted to report an EPS of $1.23, showcasing a 35.16% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $2.41 billion, up 17.52% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.98 per share and a revenue of $9.74 billion, indicating changes of +32.1% and +18.02%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Howmet. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.11% higher. Howmet currently has a Zacks Rank of #2 (Buy).
Digging into valuation, Howmet currently has a Forward P/E ratio of 54.63. Its industry sports an average Forward P/E of 22.53, so one might conclude that Howmet is trading at a premium comparatively.
We can additionally observe that HWM currently boasts a PEG ratio of 2.17. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Aerospace - Defense industry had an average PEG ratio of 1.59.
The Aerospace - Defense industry is part of the Aerospace sector. Currently, this industry holds a Zacks Industry Rank of 90, positioning it in the top 37% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow HWM in the coming trading sessions, be sure to utilize Zacks.com.
Allspring Global Investments Holdings LLC lessened its holdings in Howmet Aerospace Inc. (NYSE:HWM – Free Report) by 23.2% during the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 456,369 shares of the company’s stock after selling 137,622 shares during the period. Allspring Global Investments Holdings LLC owned approximately 0.11% of Howmet Aerospace worth $109,090,000 as of its most recent filing with the Securities & Exchange Commission.
A number of other hedge funds have also modified their holdings of HWM. Independent Financial Group LLC acquired a new position in shares of Howmet Aerospace in the first quarter worth $664,000. Prosperity Consulting Group LLC increased its holdings in Howmet Aerospace by 3.3% in the first quarter. Prosperity Consulting Group LLC now owns 3,751 shares of the company’s stock valued at $864,000 after buying an additional 119 shares during the last quarter. Aware Super Pty Ltd as trustee of Aware Super purchased a new position in Howmet Aerospace in the first quarter valued at approximately $38,072,000. Wealthfront Advisers LLC boosted its stake in Howmet Aerospace by 2.9% in the first quarter. Wealthfront Advisers LLC now owns 92,532 shares of the company’s stock valued at $21,325,000 after acquiring an additional 2,615 shares in the last quarter. Finally, D.A. Davidson & CO. grew its holdings in shares of Howmet Aerospace by 3.4% during the first quarter. D.A. Davidson & CO. now owns 15,477 shares of the company’s stock worth $3,567,000 after purchasing an additional 508 shares during the last quarter. 90.46% of the stock is currently owned by hedge funds and other institutional investors.
Howmet Aerospace Stock Up 0.4% HWM opened at $272.26 on Friday. The company has a debt-to-equity ratio of 0.73, a current ratio of 2.44 and a quick ratio of 1.59. The business has a 50 day simple moving average of $266.31 and a 200-day simple moving average of $246.67. The stock has a market capitalization of $108.93 billion, a P/E ratio of 63.17, a P/E/G ratio of 2.13 and a beta of 1.19. Howmet Aerospace Inc. has a 12 month low of $169.45 and a 12 month high of $290.63.
Howmet Aerospace (NYSE:HWM – Get Free Report) last posted its quarterly earnings results on Thursday, May 7th. The company reported $1.22 earnings per share for the quarter, beating analysts’ consensus estimates of $1.11 by $0.11. Howmet Aerospace had a return on equity of 29.27% and a net margin of 20.23%.The firm had revenue of $2.31 billion for the quarter, compared to the consensus estimate of $2.24 billion. During the same period in the previous year, the business earned $0.86 earnings per share. The company’s revenue for the quarter was up 19.1% compared to the same quarter last year. Howmet Aerospace has set its FY 2026 guidance at 4.880-5.000 EPS and its Q2 2026 guidance at 1.220-1.240 EPS. On average, equities analysts anticipate that Howmet Aerospace Inc. will post 5.05 earnings per share for the current fiscal year.
Howmet Aerospace Announces Dividend The company also recently declared a quarterly dividend, which was paid on Tuesday, May 26th. Investors of record on Friday, May 8th were issued a $0.12 dividend. The ex-dividend date was Friday, May 8th. This represents a $0.48 dividend on an annualized basis and a dividend yield of 0.2%. Howmet Aerospace’s dividend payout ratio is currently 11.14%.
Analyst Ratings Changes Several research firms have recently weighed in on HWM. Weiss Ratings reissued a “buy (b)” rating on shares of Howmet Aerospace in a report on Tuesday, April 21st. Wells Fargo & Company began coverage on Howmet Aerospace in a research note on Wednesday, April 1st. They set an “equal weight” rating and a $240.00 price target on the stock. Wall Street Zen lowered Howmet Aerospace from a “strong-buy” rating to a “buy” rating in a research report on Sunday, July 5th. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and issued a $320.00 price objective on shares of Howmet Aerospace in a research note on Friday, May 8th. Finally, Susquehanna increased their price objective on Howmet Aerospace from $300.00 to $330.00 and gave the company a “positive” rating in a report on Friday, May 8th. Eighteen investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $293.21.
Read Our Latest Stock Analysis on HWM
Insider Buying and Selling at Howmet Aerospace In related news, EVP Neil Edward Marchuk sold 41,932 shares of the firm’s stock in a transaction that occurred on Monday, May 11th. The stock was sold at an average price of $269.50, for a total value of $11,300,674.00. Following the completion of the transaction, the executive vice president directly owned 65,105 shares of the company’s stock, valued at $17,545,797.50. This trade represents a 39.18% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.85% of the stock is currently owned by corporate insiders.
Howmet Aerospace Company Profile (Free Report)
Howmet Aerospace Inc is an industrial technology company that designs, manufactures and repairs engineered metal products for the aerospace, transportation and industrial markets. Its product portfolio includes precision castings and forgings, engineered fasteners, seamless rolled rings, and complex components for turbine engines, airframes and industrial gas turbines. The company also provides aftermarket services such as component repair, overhaul and parts distribution to support the operating fleet of commercial and military customers.
Howmet serves a global customer base of original equipment manufacturers (OEMs) and aftermarket operators, with manufacturing, service and distribution facilities across North America, Europe and Asia.
Read More Five stocks we like better than Howmet Aerospace AST SpaceMobile Stock Sinks as SpaceX Fallout Rattles Space Sector Aehr Test Systems Stock Soars on Earnings, Eyes Over 150% Revenue Growth TSMC Just Gave AI Chip Bulls Another Reason to Stay Confident GE Aerospace Faces a Prove-It Moment in Q2 Earnings Want to see what other hedge funds are holding HWM? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Howmet Aerospace Inc. (NYSE:HWM – Free Report).
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Howmet (HWM - Free Report) closed at $271.19 in the latest trading session, marking a -2.88% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.51%. Elsewhere, the Dow saw a downswing of 0.2%, while the tech-heavy Nasdaq depreciated by 1.47%.
Heading into today, shares of the maker of engineered products for the aerospace and other industries had lost 1.41% over the past month, outpacing the Aerospace sector's loss of 2.93% and lagging the S&P 500's gain of 0.53%.
The investment community will be paying close attention to the earnings performance of Howmet in its upcoming release. The company is slated to reveal its earnings on August 6, 2026. It is anticipated that the company will report an EPS of $1.24, marking a 36.26% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $2.41 billion, up 17.52% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.98 per share and a revenue of $9.74 billion, signifying shifts of +32.1% and +18.02%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Howmet. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.11% higher. Right now, Howmet possesses a Zacks Rank of #2 (Buy).
In terms of valuation, Howmet is currently trading at a Forward P/E ratio of 56.09. Its industry sports an average Forward P/E of 22.21, so one might conclude that Howmet is trading at a premium comparatively.
We can additionally observe that HWM currently boasts a PEG ratio of 2.22. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Aerospace - Defense industry currently had an average PEG ratio of 1.56 as of yesterday's close.
The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 100, which puts it in the top 41% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Shares of Howmet Aerospace, Inc. (HWM) gain 249% since May 2024’s first outlier inflow.
Howmet develops and manufactures metal products for the aerospace and defense industries, including engines, fasteners, engineered structures, and forged wheels that end up on airplanes, trucks, and more around the world. Its engines are even being used for AI data center backup power. HWM’s first-quarter fiscal 2026 report showed $2.31 billion in quarterly revenue (a 19% year-over-year gain), quarterly per-share earnings of $1.22 (a 42% gain), and offered second-quarter revenue and EPS guidance of $2.4 billion and $1.23, respectively. The company reports again on Aug. 6.
It’s no wonder HWM shares are up 35% this year – and they could rise more. MoneyFlows data shows how Big Money investors are betting heavily on the forward picture of the stock.
Inflows Flying to Howmet Institutional volumes reveal plenty. In the last year, HWM has enjoyed strong investor demand, which we believe to be institutional support.
Each green bar signals unusually large volumes in HWM shares. They reflect our proprietary inflow signal, pushing the stock higher:
HWM is up 50.2% in the last year as institutional inflows drove shares higher. Source: www.moneyflows.com Plenty of industrials names are under accumulation right now. But there’s a powerful fundamental story happening with Howmet.
Howmet Fundamental Analysis Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, HWM has had strong sales and earnings growth:
Also, EPS is estimated to ramp higher this year by +19.7%.
Now it makes sense why the stock has been powering to new heights. HWM has a track record of strong financial performance.
Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.
Howmet has been a top-rated stock at MoneyFlows. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.
It’s made the rare Outlier 20 report six times in the last year and is up 249% since the first outlier signal a little more than two years ago. The blue bar below shows when HWM was a top pick…institutional support pushes shares higher:
HWM is up 37.9% since the outlier inflow signal on Oct. 28, 2025. Source: www.moneyflows.com Tracking unusual volumes reveals the power of money flows.
This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.
Howmet Price Prediction The HWM rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.
Disclosure: the author holds no position in HWM at the time of publication.
If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level and follow our free weekly MoneyFlows insights.
Key Takeaways Howmet's commercial aerospace revenues rose 20% in Q1, surpassing $1.2 billion and making up 53% of sales.HWM's Engine Products revenues climbed 29% on strong engine spare demand and aircraft backlog.Howmet could benefit from Boeing production recovery and healthy Airbus build rates supporting demand. The strongest driver of Howmet Aerospace Inc.’s (HWM - Free Report) business at the moment is strength in the commercial aerospace market. Revenues from the commercial aerospace market increased 20% year over year (exceeding $1.2 billion) in the first quarter of 2026, constituting 53% of HWM’s business.
This uptick significantly benefited Howmet’s Engine Products segment, which reported a 29% year-over-year revenue increase in the first quarter. The sustained strength was attributed to increasing demand for engine spares and a record backlog for new, more fuel-efficient aircraft with reduced carbon emissions. Driven by strength across the commercial and defense aerospace markets, revenues from HWM’s Fastening Systems segment also increased 14% year over year.
Boeing is also anticipated to witness a gradual production recovery, particularly in the 737 MAX widebody aircraft, which is likely to boost demand for Howmet’s products in the market. Also, healthy build rates at Airbus for A320 (narrowbody) and A350 (widebody) aircraft hold promise for spare engine demand. With commercial aircraft programs expected to continue benefiting from the strength in air travel, the company is poised to maintain robust demand momentum in the quarters ahead.
HWM’s Peers in the Commercial Aerospace MarketGE Aerospace (GE - Free Report) is benefiting from the solid demand for LEAP, GEnx & GE9X engines and services within the Commercial Engines & Services business. Revenues from GE Aerospace’s Commercial Engines & Services business jumped 34% year over year to $8.92 billion in first-quarter 2026. GE Aerospace has also been making investments to expand and upgrade manufacturing facilities in the United States and overseas.
RBC Bearings Incorporated (RBC - Free Report) is gaining from the strong performance of the Aerospace/Defense segment. Strength in the commercial aerospace market, driven by strong growth in orders from the OEM and the aftermarket verticals, is driving the Aerospace/Defense segment. The segment’s revenues were up 41.2% year over year in fourth-quarter fiscal 2026 (ended March 2026).
HWM's Price Performance, Valuation and EstimatesShares of Howmet have gained 6.8% in the past three months against the industry’s decline of 4.5%.
Image Source: Zacks Investment Research
From a valuation standpoint, HWM is trading at a forward price-to-earnings ratio of 49.42X, above the industry’s average of 32.84X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HWM’s earnings has been on the rise over the past 60 days.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Howmet (HWM - Free Report) closed at $270.85 in the latest trading session, marking a -1.07% move from the prior day. This move lagged the S&P 500's daily gain of 0.42%. At the same time, the Dow added 0.29%, and the tech-heavy Nasdaq gained 0.29%.
The maker of engineered products for the aerospace and other industries's shares have seen an increase of 3.47% over the last month, surpassing the Aerospace sector's gain of 1.11% and the S&P 500's gain of 2.2%.
Market participants will be closely following the financial results of Howmet in its upcoming release. The company plans to announce its earnings on August 6, 2026. The company's upcoming EPS is projected at $1.24, signifying a 36.26% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $2.42 billion, up 17.68% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.98 per share and revenue of $9.74 billion, which would represent changes of +32.1% and +18.02%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Howmet. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.11% rise in the Zacks Consensus EPS estimate. Howmet is holding a Zacks Rank of #2 (Buy) right now.
Looking at valuation, Howmet is presently trading at a Forward P/E ratio of 54.99. This valuation marks a premium compared to its industry average Forward P/E of 22.59.
It is also worth noting that HWM currently has a PEG ratio of 2.18. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Aerospace - Defense industry stood at 1.58 at the close of the market yesterday.
The Aerospace - Defense industry is part of the Aerospace sector. With its current Zacks Industry Rank of 102, this industry ranks in the top 42% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the 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.
Investors with an interest in Aerospace - Defense stocks have likely encountered both Lockheed Martin (LMT) and Howmet (HWM). But which of these two stocks is more attractive to value investors?
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Let's take a look at what these Wall Street heavyweights have to say about Howmet (HWM - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Howmet currently has an average brokerage recommendation (ABR) of 1.39, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 23 brokerage firms. An ABR of 1.39 approximates between Strong Buy and Buy.
Of the 23 recommendations that derive the current ABR, 18 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 78.3% and 4.4% of all recommendations.
Brokerage Recommendation Trends for HWM
Check price target & stock forecast for Howmet here>>>
The ABR suggests buying Howmet, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is HWM Worth Investing In?In terms of earnings estimate revisions for Howmet, the Zacks Consensus Estimate for the current year has increased 0.1% over the past month to $4.98.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Howmet. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Howmet may serve as a useful guide for investors.
Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. But finding a growth stock that can live up to its true potential can be a tough task.
In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.
However, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.
Howmet (HWM - Free Report) is one such stock that our proprietary system currently recommends. The company not only has a favorable Growth Score, but also carries a top Zacks Rank.
Research shows that stocks carrying the best growth features consistently beat the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.
While there are numerous reasons why the stock of this maker of engineered products for the aerospace and other industries is a great growth pick right now, we have highlighted three of the most important factors below:
Earnings GrowthEarnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration.
While the historical EPS growth rate for Howmet is 40%, investors should actually focus on the projected growth. The company's EPS is expected to grow 32.1% this year, crushing the industry average, which calls for EPS growth of 12.5%.
Cash Flow GrowthWhile cash is the lifeblood of any business, higher-than-average cash flow growth is more important and beneficial for growth-oriented companies than for mature companies. That's because, growth in cash flow enables these companies to expand their businesses without depending on expensive outside funds.
Right now, year-over-year cash flow growth for Howmet is 31.2%, which is higher than many of its peers. In fact, the rate compares to the industry average of 8.3%.
While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 21.3% over the past 3-5 years versus the industry average of 12.2%.
Promising Earnings Estimate RevisionsBeyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
There have been upward revisions in current-year earnings estimates for Howmet. The Zacks Consensus Estimate for the current year has surged 0.1% over the past month.
Bottom LineHowmet has not only earned a Growth Score of B based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This combination positions Howmet well for outperformance, so growth investors may want to bet on it.
, /PRNewswire/ -- Howmet Aerospace Inc. (NYSE: HWM) will announce its second quarter 2026 financial results on Thursday, August 6, 2026. The press release and presentation materials will be available at approximately 7:00 AM ET on August 6, 2026, via the "Investors" section of the Howmet Aerospace website.
The conference call and webcast will begin at 10:00 AM ET. Details of both follow.
Conference Call Information:
Day:
Thursday, August 6, 2026
Time:
10:00 AM ET
Hosts:
John Plant, Executive Chairman and Chief Executive Officer
Patrick Winterlich, Executive Vice President and Chief Financial Officer
Call:
U.S./Canada Toll Free: + 1-844-481-2703
International Toll: + 1-412-317-0659
Participants may pre-register for the conference call at:
https://dpregister.com/sreg/10205417/102ffa34708
Webcast:
Available on the "Investors/Events and Presentations" section of www.howmet.com
(audio and slides).
Replay Information
A webcast replay of the call will be available on the "Investors/Events and Presentations" section of www.howmet.com. Telephone replay of the call will be available from two hours after the conclusion of the live call until August 20, 2026, at 11:59 PM ET. Details follow.
Replay:
USA Toll Free/Canada:
1-855-669-9658
International Toll:
1-412-317-0088
Replay Access Code:
6310452
Or access via the "Investors/Events and Presentations" section of www.howmet.com
About Howmet Aerospace
Howmet Aerospace Inc., headquartered in Pittsburgh, Pennsylvania, is a leading global provider of advanced engineered solutions for the aerospace, gas turbine, and transportation industries. The Company's primary businesses focus on engine components, fastening systems, and airframe structural components necessary for mission-critical performance and efficiency, including in aerospace, defense, and gas turbine applications, as well as forged aluminum wheels for commercial transportation. With approximately 1,200 granted and pending patents, the Company's differentiated technologies enable lighter, more fuel-efficient aircraft and commercial trucks to operate with a lower carbon footprint.
For more information, visit www.howmet.com.
Dissemination of Company Information
Howmet Aerospace intends to make future announcements regarding Company developments and financial performance through its website at www.howmet.com.
In the latest trading session, Howmet (HWM - Free Report) closed at $271.58, marking a -1.4% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.28%. On the other hand, the Dow registered a loss of 1.09%, and the technology-centric Nasdaq increased by 0.2%.
The maker of engineered products for the aerospace and other industries's stock has climbed by 7.1% in the past month, exceeding the Aerospace sector's gain of 4.11% and the S&P 500's gain of 1.64%.
The investment community will be closely monitoring the performance of Howmet in its forthcoming earnings report. On that day, Howmet is projected to report earnings of $1.24 per share, which would represent year-over-year growth of 36.26%. In the meantime, our current consensus estimate forecasts the revenue to be $2.42 billion, indicating a 17.68% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.97 per share and a revenue of $9.72 billion, signifying shifts of +31.83% and +17.8%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Howmet. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 0.02% rise in the Zacks Consensus EPS estimate. Currently, Howmet is carrying a Zacks Rank of #2 (Buy).
In terms of valuation, Howmet is presently being traded at a Forward P/E ratio of 55.37. Its industry sports an average Forward P/E of 23.2, so one might conclude that Howmet is trading at a premium comparatively.
We can additionally observe that HWM currently boasts a PEG ratio of 2.21. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Aerospace - Defense industry currently had an average PEG ratio of 1.59 as of yesterday's close.
The Aerospace - Defense industry is part of the Aerospace sector. This industry, currently bearing a Zacks Industry Rank of 107, finds itself in the top 44% echelons 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
The Aerospace group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Howmet (HWM - Free Report) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.
Howmet is a member of our Aerospace group, which includes 77 different companies and currently sits at #1 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Howmet is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for HWM's full-year earnings has moved 10.6% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Our latest available data shows that HWM has returned about 34.3% since the start of the calendar year. In comparison, Aerospace companies have returned an average of 5.2%. This means that Howmet is performing better than its sector in terms of year-to-date returns.
Loar Holdings Inc. (LOAR - Free Report) is another Aerospace stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 14.4%.
The consensus estimate for Loar Holdings Inc.'s current year EPS has increased 75.8% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, Howmet belongs to the Aerospace - Defense industry, a group that includes 39 individual companies and currently sits at #107 in the Zacks Industry Rank. On average, this group has gained an average of 1.7% so far this year, meaning that HWM is performing better in terms of year-to-date returns.
Loar Holdings Inc., however, belongs to the Aerospace - Defense Equipment industry. Currently, this 37-stock industry is ranked #43. The industry has moved +13.6% so far this year.
Investors with an interest in Aerospace stocks should continue to track Howmet and Loar Holdings Inc.. These stocks will be looking to continue their solid performance.
Key Takeaways Howmet's defense aerospace revenues rose 10% in Q1, driven by F-35 engine spares and legacy fighter demand.HWM's Engine Products segment posted 29% revenue growth as defense aerospace strength continued.Howmet raised its 2026 outlook, expecting up to $9.725 billion in revenues and $3.095 billion in EBITDA. Howmet Aerospace Inc. (HWM - Free Report) is witnessing persistent strength in its defense aerospace market. In first-quarter 2026, revenues from the defense aerospace market surged 10% year over year, constituting 16% of the company’s revenues. Also, in 2025, revenues from this market increased 21% year over year. The surge in revenues was driven by the strong demand for engine spares, particularly related to the F-35 program, and increased orders for legacy fighter jet spares.
This uptick significantly benefited Howmet’s Engine Products segment, which reported a 29% year-over-year revenue increase in the first quarter. The company is expanding its efforts on new programs, particularly in the drone and collaborative combat aircraft space. With military-aircraft programs expected to benefit from increased funding, HWM is poised to maintain strong demand momentum in the upcoming quarters.
It's worth noting that the fiscal year 2026 Defense Appropriations Act was signed into law in February 2026, providing a strong budgetary allocation for defense. Such robust budgetary provisions set the stage for Howmet, which is focused on the defense business, to win more contracts, which is likely to boost its top line.
Driven by strength across both defense and commercial aerospace markets, the company raised its 2026 outlook and currently expects total revenues of $9.575-$9.725 billion and adjusted EBITDA of $3.025-$3.095 billion.
Segment Snapshot of HWM’s PeersTextron Inc.’s (TXT - Free Report) defense business is gaining momentum, backed by key U.S. military contracts and steady government support. In first-quarter 2026, Bell’s military revenues increased year over year, driven by continued growth on the MV-75 Cheyenne program. Textron Systems revenues increased 13% largely due to higher volume on the Ship-to-Shore Connector program and military training services at ATAC.
GE Aerospace (GE - Free Report) is benefiting from solid momentum in its Defense & Propulsion Technologies segment. In first-quarter 2026, GE Aerospace clinched a $1.4 billion deal for T408 engines to support the U.S. Marine Corps’ CH-53K helicopter fleet. Driven by strong bookings, revenues from the Defense & Propulsion Technologies segment increased 19% year over year and orders grew 67% in the first quarter.
HWM's Price Performance, Valuation and EstimatesShares of Howmet have surged 32.3% in the past six months against the industry’s decline of 1.7%.
Image Source: Zacks Investment Research
From a valuation standpoint, HWM is trading at a forward price-to-earnings ratio of 50.86X, above the industry’s average of 34.03X. Howmet carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HWM’s 2026 earnings has increased 9% over the past 60 days.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
If you sort all the top politicians with a portfolio of above $1 million using their annual gains, who do you expect at the top? Likely Nancy Pelosi, but that’s not the case. A Republican Senator named Ashley Moody has gained 310% in the past year using her portfolio.
Her portfolio and her (lack of) trades make everything stand out from everyone else’s.
Is this a new Nancy Pelosi on the other side of the aisle, or are her gains an artifact of a few lucky trades? Let’s take a look.
How Ashley Moody outperformed Moody’s last batch of trades was in April of last year as the market was recovering from the tariff crisis. She reported buying Ares Capital (NASDAQ:ARCC | ARCC Price Prediction), Howmet Aerospace (NYSE:HWM), Energy Transfer (NYSE:ET), JPMorgan Chase (NYSE:JPM), and Super Micro Computer (NASDAQ:SMCI).
Out of all these stocks, HWM is up the most, and it is only up 54% in the past year. Some have even collapsed, with SMCI stock down 41% in the past year.
A month earlier in March, she bought both Nvidia (NASDAQ:NVDA) and Eli Lilly (NYSE:LLY). NVDA stock is up 28% in the past year, with LLY up 53%. The biggest gains came from AMD, which Moody bought in late February. AMD stock is up 306% in the past year.
Is Moody the next Pelosi? Moody’s trades and gains are quite different from those of Nancy Pelosi. Nancy Pelosi herself does not make the trades attributed to her, and it’s instead her husband who makes these moves. Ashley Moody’s trades are “never approved or initiated” by her and are attributed to her because she was part of an extended family investment partnership managed by an adviser.
Moreover, Moody has been far less successful compared to the Pelosis. One year of outperformance is not enough compared to the sustained outperformance of the Pelosis’ portfolio over decades. These trades are even more hit-or-miss, since she owns several stocks (like SMCI) that are down 40-70% in the past year.
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She’s no longer trading Ashley Moody’s portfolio became awkwardly high-performing right as she presented herself as a reformer on congressional stock trading. She ended up exiting the family investment arrangement last year and wants a trading ban so members cannot even appear to profit from office.
Stock market trades with a politician’s name attached to it will always draw eyeballs, but she’s not going to build a reputation like Nancy Pelosi with one outlier year.
All that said, the public record does not show that she or the investment firm sold all the trades. If you like the moves made by whichever investment firm this is, you can still track her stocks, though this is unlikely to yield you an advantage. When people track Pelosi’s trades, they are following trades handpicked by her husband, who is a seasoned venture capitalist. Malice involved or not, following the Pelosi portfolio has historically put you in good hands.
When it comes to Moody’s portfolio, this is now a stale roster of stocks I wouldn’t mirror.
The three stocks I’d still buy from the portfolio Moody held solid names like AMD, NVDA, and HWM. I expect these three to continue outperforming in the coming years. AMD and Nvidia are making good use of the AI tailwinds, with AMD in particular still being rather undervalued if you take future AI CPU demand into account. Some analysts say AI CPUs will be needed just as much as AI GPUs are today. AMD could be a multibagger if the buildout reaches this stage without a hiccup.
As for Howmet Aerospace, this company is already seeing significant tailwinds from high military spending. The U.S. is expected to spend well above a trillion on its military, with other NATO members collectively bumping up their spending towards a new target of 5% of their GDPs. A plurality of military spending goes into aerospace.
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Howmet Aerospace Inc.’s (HWM - Free Report) shares have surged 52.6% in the past year, outpacing the industry and the S&P 500, which have returned 7.1% and 24.6%, respectively. The company has also outshone its peers like Textron Inc. (TXT - Free Report) and RTX Corporation (RTX - Free Report) , which have returned 13.3% and 31.6%, respectively, over the same time frame.
HWM Outperforms the Industry, S&P 500 & Peers
Image Source: Zacks Investment Research
Closing at $268.86 in the last trading session, the stock is trading close to its 52-week high of $290.63 and significantly higher than its 52-week low of $169.45. It is trading above both its 50-day and 200-day moving averages, indicating solid upward momentum and confidence in the company's long-term prospects.
Let’s take a look at HWM’s fundamentals to better analyze how to play the stock.
Factors Driving HWM’s PerformanceThe strongest driver of Howmet Aerospace’s business at the moment is the persistent strength in its commercial aerospace market. In the first quarter of 2026, the company’s revenues from the commercial aerospace market increased 20% year over year (exceeding $1.2 billion), which accounted for 53% of its quarterly sales. Strong air travel activities have been positive for the company, as the increased usage of aircraft has driven spending on parts and products that it provides.
This uptick significantly benefited Howmet’s Engine Products segment, which reported a 29% year-over-year revenue increase in the first quarter. The sustained strength was attributed to solid momentum in the commercial aerospace, defense aerospace and gas turbine markets. Driven by strength across the commercial and defense aerospace markets, revenues from the Fastening Systems segment also increased 14% year over year.
Also, Boeing is witnessing a gradual production increase, particularly in the 737 MAX widebody aircraft, which is boosting demand for Howmet Aerospace’s products in the market. Healthy build rates at Airbus for A320 (narrowbody) and A350 (widebody) aircraft also hold promise for HWM’s engine spares demand.
Strong momentum in its defense aerospace market is also a positive for the company. Revenues from the defense aerospace market increased 10% year over year in first-quarter 2026. The surge in revenues was driven by the solid demand for engine spares, particularly related to the F-35 program, and an increase in orders for legacy fighter jet spares.
It's worth noting that the fiscal year 2026 Defense Appropriations Act was signed into law in February 2026, providing a strong budgetary allocation for defense. Such robust provisions set the stage for Howmet Aerospace, which remains focused on its defense business.
HWM’s measures to reward shareholders are encouraging. In the first three months of 2026, the company paid dividends of $48 million and repurchased shares worth $300 million. In August 2025, the company hiked its dividend by 20% to 12 cents per share (annually: 48 cents), marking its second dividend hike in 2025. Also, in July 2024, its board approved an increase in the share repurchase program by $2 billion to $2.487 billion of its common stock.
Howmet Aerospace is a key player in the aerospace and defense markets, alongside companies such as Textron and RTX Corp.
HWM’s Estimate RevisionsThe Zacks Consensus Estimate for HWM’s bottom line for 2026 has increased 7.7% in the past 60 days.
Image Source: Zacks Investment Research
ValuationHowmet Aerospace is trading at a forward 12-month price-to-earnings (P/E) ratio of 49.06X, much higher than the industry average of 33.28X. This elevated valuation could make the stock vulnerable to further pullbacks if market sentiment sours.
Image Source: Zacks Investment Research
In comparison with HWM’s valuation, its peers, Textron and RTX Corp., are trading cheaper. TXT and RTX are currently trading at 13.17X and 26.27X, respectively.
ConclusionStrength across both the commercial and defense aerospace markets, driven by solid aircraft build rates, strong engine spares demand and elevated defense spending, positions Howmet Aerospace well for sustained growth in the coming quarters. Supported by a healthy liquidity position, the company’s shareholder-friendly initiatives further enhance its investment appeal.
Despite its premium valuation, favorable analyst sentiment and strong growth prospects suggest that investors may consider this Zacks Rank #2 (Buy) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Space Exploration Technologies, better known as SpaceX, had a huge initial public offering (IPO) earlier this month, making founder Elon Musk the first trillionaire. However, since its splashy debut, the stock had fallen to $147.11 on June 23 and, even after a rebound, is below its opening day's closing price of $160.95.
The sky isn't the limit for aerospace and defense industry stocks, and there are several less-risky stocks than SpaceX, including companies with strong track records of earnings-per-share (EPS) growth.
Howmet Aerospace (HWM 1.71%) and TransDigm Group (TDG 0.40%) have earnings growth profiles that easily outpace larger aerospace and defense companies. Over the past five years, Howmet's EPS have risen by more than 540% while TransDigm's have jumped more than 270%.
Here are three reasons to buy each stock.
Image source: Getty Images.
Howmet is helping keep aging fleets aloft Howmet Aerospace has established itself as an elite, high-moat supplier of industrial and aerospace ecosystems. While delays in new aircraft production by major original equipment manufacturers (OEMs) have constrained the broader industry, they have created a massive windfall for Howmet's aftermarket business. Commercial airlines are flying older fleets longer to meet robust travel demand, so more aircraft require intensive maintenance and engine overhauls.
In the first quarter, Howmet reported revenue of $2.3 billion, up 19% year over year, and earnings per share (EPS) of $1.44, up 71%. In 2025, Howmet's commercial aerospace spare parts sales skyrocketed 48% year over year, bringing spares to roughly 23% of total revenue. Because aftermarket spare parts carry significantly higher margins than initial equipment builds, this structural mix shift is a powerful margin expander.
Today's Change
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-4.67
Current Price
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268.47
The data center boom needs its gas turbines Beyond aviation, Howmet is emerging as a critical pick-and-shovel play on the artificial intelligence and data center land grab. Data centers require massive, uninterrupted amounts of electricity, driving a secular surge in demand for industrial gas turbines to back up power grids.
Howmet's gas turbine segment delivered 39% year-over-year revenue growth in the first quarter. Management expects its roughly $1 billion gas turbine business to potentially double over the next three to five years, giving the company a highly visible, non-aerospace growth engine backed by long-term corporate energy contracts.
A strategic beat and raise M&A record In April, the company finalized its $1.8 billion acquisition of Consolidated Aerospace Manufacturing (CAM), expanding its high-value fastening systems portfolio and deepening its lucrative footprint in the defense and space sectors.
The Consolidated Aerospace integration, along with its $120 million purchase of Brunner in February, is projected to add roughly $275 million in revenue and $60 million in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to the remainder of 2026 alone. This aggressive portfolio optimization, coupled with $450 million in share repurchases executed in early 2026, supports a robust beat-and-raise trajectory that has drawn sizable institutional backing, as institutions own more than 90% of outstanding shares.
TransDigm's proprietary intellectual property moat TransDigm does not manufacture commoditized aviation parts; it focuses strictly on highly engineered, niche components. Roughly 90% of TransDigm's net sales come from proprietary products for which it owns the intellectual property (IP).
Even more compelling, the company is the sole-source supplier for approximately 80% of the products it sells. If an airline needs a specific replacement valve, actuator, or cockpit control component for a commercial airliner, it frequently has no choice but to buy it from TransDigm, giving the company practically unparalleled pricing power.
In the second quarter, TransDigm reported revenue of $2.54 billion, up 18.3% year over year, and EPS of $9.20, up 11.6% over the same period a year ago.
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Its high-margin aftermarket engine While manufacturing parts for new aircraft (OEM) is a solid business, the real goldmine for TransDigm is the commercial aftermarket. Airplanes are legally required to follow strict maintenance schedules based on flight hours. Because commercial airlines are flying existing fleets longer to cope with ongoing OEM delivery bottlenecks, TransDigm's commercial transport aftermarket sales jumped 16% year over year in the second quarter. This aftermarket business is incredibly lucrative, driving a stunning consolidated EBITDA margin of 52.6%, a software-like margin that is rare in heavy manufacturing.
Aggressive M&A value creation TransDigm, like Howmet, accelerates its growth through a highly disciplined and aggressive acquisition playbook. It buys small, niche aerospace component makers that own proprietary IP, integrates them into its value-driven operating model, and strips out structural inefficiencies.
TransDigm drastically raised its fiscal 2026 revenue guidance midpoint by $420 million (now targeting $10.3 billion to $10.42 billion), fueled heavily by its base business and the integration of highly synergistic acquisitions such as its January purchase of Jet Parts Engineering and Victor Sierra Aviation for $2.2 billion.
Management is also aggressively deploying capital, returning $905 million to shareholders via buybacks in the first half of fiscal 2026 while completing its $960 million acquisition of Stellant Systems to expand its defense aftermarket tech footprint.
Howmet (HWM - Free Report) ended the recent trading session at $273.14, demonstrating a -1.06% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.01% for the day. On the other hand, the Dow registered a gain of 0.14%, and the technology-centric Nasdaq decreased by 0.46%.
The maker of engineered products for the aerospace and other industries's stock has climbed by 6.99% in the past month, exceeding the Aerospace sector's gain of 2.96% and the S&P 500's loss of 1.4%.
The investment community will be paying close attention to the earnings performance of Howmet in its upcoming release. The company is expected to report EPS of $1.24, up 36.26% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $2.42 billion, showing a 17.68% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $4.96 per share and a revenue of $9.72 billion, demonstrating changes of +31.56% and +17.8%, respectively, from the preceding year.
Any recent changes to analyst estimates for Howmet should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Howmet is currently sporting a Zacks Rank of #2 (Buy).
Investors should also note Howmet's current valuation metrics, including its Forward P/E ratio of 55.63. Its industry sports an average Forward P/E of 24.86, so one might conclude that Howmet is trading at a premium comparatively.
Investors should also note that HWM has a PEG ratio of 2.22 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Aerospace - Defense industry had an average PEG ratio of 1.49.
The Aerospace - Defense industry is part of the Aerospace sector. Currently, this industry holds a Zacks Industry Rank of 102, positioning it in the top 42% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
Trying to find the "best" or the "smartest" stocks to own is a lot like seeking perfection. Investors are apt to feel as though they're aiming at a moving target.
Recalibrate expectations to "smart" from "smartest," and a wider selection universe opens. It includes Howmet Aerospace (HWM +0.68%). This aerospace stock is on a spectacular three-year run, gaining 500% and trouncing the largest industrial, aerospace, and defense exchange-traded funds (ETFs) along the way.
There are many reasons why Howmet Aerospace is a smart idea among industrial stocks. Image source: Getty Images.
So, with Howmet having played the role of an exponential compounder over the past few years, investors may be leery of it being the smartest stock to buy in the aerospace and defense sector. That's a valid concern, and Howmet may be the smartest name in this industry to buy here and now, but it remains a shrewd idea. Here's why.
Honing in on Howmet Howmet isn't a dedicated defense stock, but it's a smart idea, as the company does an admirable job of navigating the aerospace and defense industries. Actually, it dances on three floors: commercial air-engine parts, defense hardware, and industrial gas turbines. So it's accurate to say Howmet has multiple revenue levers.
And even better, diversification means all three segments are growing. In the most recently reported quarter, Howmet's revenue growth "laggard" was defense, which posted a sales increase of "just" 13%, while commercial aerospace and gas turbines notched increases of 48% and 39%, respectively.
Still, defense exposure is one reason Howmet is a smart stock to consider. Consider it a "top gun" supplier to defense contracts because Howmet supplies vital parts for the F-35 Lightning II, also known as the Joint Strike Fighter (JSF), among other fighter jets. Put simply, the military aircraft that use Howmet parts don't get off the runway or the aircraft carrier without those parts.
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Adding to the case for Howmet as an intelligent defense stock to own is that it's not Boeing or Lockheed Martin competing for government contracts. Rather, Howmet controls a crucial supply and does so in a wide-moat fashion. So while defense isn't Howmet's fastest-growing segment, it's additive to the "smart" thesis.
Howmet earns high marks Beyond robust top-line growth across its three segments, Howmet offers other reasons that confirm it's a smart choice among industrial stocks. There's the A- credit rating, consistent debt reduction, and double-digit free cash flow margins.
Those attributes support a sturdy balance sheet. Howmet's net leverage is just 0.9x, and the company isn't shy about distributing cash to shareholders. It did so to the tune of $450 million in the first quarter, and its dividend increase streak is now at five years. With an undemanding payout ratio of 10.7%, there's ample room for the payout to grow over the long term.
Putting it all together, "smartest" can be subjective, but Howmet is a smart choice for investors seeking a fundamentally sound industrial stock with upside potential and a durable balance sheet. And that's more than good enough.
Howmet Aerospace (HWM) earns a 'Strong Buy' rating for its critical role in both the aerospace and AI infrastructure value chains. HWM commands a dominant market position, outpacing domestic competitors in aerospace revenue growth and leveraging a vast IP portfolio. The company is a key supplier to global gas turbine leaders, positioning HWM to benefit from sustained AI-driven energy demand and supply constraints.
For those looking to find strong Aerospace stocks, it is prudent to search for companies in the group that are outperforming their peers. Howmet (HWM - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.
Howmet is one of 67 individual stocks in the Aerospace sector. Collectively, these companies sit at #2 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Howmet is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for HWM's full-year earnings has moved 11.1% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the latest available data, HWM has gained about 35.4% so far this year. At the same time, Aerospace stocks have gained an average of 4.5%. This shows that Howmet is outperforming its peers so far this year.
Another stock in the Aerospace sector, Loar Holdings Inc. (LOAR - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 5.4%.
Over the past three months, Loar Holdings Inc.'s consensus EPS estimate for the current year has increased 75.8%. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Howmet is a member of the Aerospace - Defense industry, which includes 29 individual companies and currently sits at #105 in the Zacks Industry Rank. On average, this group has gained an average of 0.8% so far this year, meaning that HWM is performing better in terms of year-to-date returns.
In contrast, Loar Holdings Inc. falls under the Aerospace - Defense Equipment industry. Currently, this industry has 37 stocks and is ranked #58. Since the beginning of the year, the industry has moved +14.8%.
Investors with an interest in Aerospace stocks should continue to track Howmet and Loar Holdings Inc.. These stocks will be looking to continue their solid performance.
Key Takeaways HWM's commercial aerospace revenues rose 20% year over year to over $1.2 billion in Q1 2026.HWM benefits from demand for engine spares, aircraft backlogs and rising Boeing and Airbus production.HWM raised its 2026 outlook, expecting $9.575-$9.725 billion in total revenues. Howmet Aerospace Inc. (HWM - Free Report) has been benefiting from persistent strength in the commercial aerospace market. Strong air travel activities have been a major tailwind for the company, as the increased usage of aircraft is driving spending on parts and products that it provides.
Revenues from the commercial aerospace market increased 20% year over year (exceeding $1.2 billion) in the first quarter of 2026, constituting 53% of HWM’s business. Also, revenues from the market increased 12% year over year in 2025.
The sustained strength was attributed to healthy demand for engine spares and a record backlog for new, more fuel-efficient aircraft with reduced carbon emissions. Boeing is also witnessing a gradual production increase, particularly in the 737 MAX widebody aircraft, which is likely to boost demand for Howmet’s products in the market. Also, healthy build rates at Airbus for A320 (narrowbody) and A350 (widebody) aircraft hold promise for its spare engine demand.
HWM is expected to maintain strong business momentum going forward, supported by a solid pipeline of commercial aircraft programs and strength in global air travel. Driven by strength across its businesses, HWM raised its 2026 outlook and currently expects total revenues of $9.575-$9.725 billion and adjusted EBITDA of $3.025-$3.095 billion.
HWM’s Peers in the Commercial Aerospace MarketRBC Bearings Incorporated (RBC - Free Report) is gaining from the strong performance of the Aerospace/Defense segment. Strength in the commercial aerospace market, driven by strong growth in orders from the OEM and the aftermarket verticals, is driving the Aerospace/Defense segment. The segment’s revenues were up 41.2% year over year in fourth-quarter fiscal 2026 (ended March 2026).
Parker-Hannifin Corp.’s (PH - Free Report) Aerospace Systems segment is experiencing strength in the commercial and military markets across both the OEM and aftermarket channels. Revenues from Parker-Hannifin’s Aerospace Systems segment jumped 15.5% year over year in the third quarter of fiscal 2026 (ended March 2026). Parker-Hannifin’s Aerospace Systems segment is poised to gain from strong demand for its products and aftermarket support services in the general aviation market.
HWM's Price Performance, Valuation and EstimatesShares of Howmet have gained 17.1% in the past three months against the industry’s decline of 0.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, HWM is trading at a forward price-to-earnings ratio of 51.74X, above the industry’s average of 33.01X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HWM’s earnings has been on the rise over the past 60 days.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Howmet (HWM - Free Report) closed at $275.13 in the latest trading session, marking a -1.87% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 1.44% for the day. Meanwhile, the Dow experienced a drop of 0.09%, and the technology-dominated Nasdaq saw a decrease of 2.22%.
Coming into today, shares of the maker of engineered products for the aerospace and other industries had gained 9.28% in the past month. In that same time, the Aerospace sector gained 2.86%, while the S&P 500 gained 0.08%.
The investment community will be closely monitoring the performance of Howmet in its forthcoming earnings report. On that day, Howmet is projected to report earnings of $1.24 per share, which would represent year-over-year growth of 36.26%. In the meantime, our current consensus estimate forecasts the revenue to be $2.42 billion, indicating a 17.68% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.96 per share and a revenue of $9.72 billion, signifying shifts of +31.56% and +17.8%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Howmet. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Howmet presently features a Zacks Rank of #2 (Buy).
From a valuation perspective, Howmet is currently exchanging hands at a Forward P/E ratio of 56.5. This indicates a premium in contrast to its industry's Forward P/E of 24.74.
Meanwhile, HWM's PEG ratio is currently 2.26. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Aerospace - Defense industry stood at 1.47 at the close of the market yesterday.
The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 104, putting it in the top 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow HWM in the coming trading sessions, be sure to utilize Zacks.com.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Let's take a look at what these Wall Street heavyweights have to say about Howmet (HWM - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Howmet currently has an average brokerage recommendation (ABR) of 1.38, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 24 brokerage firms. An ABR of 1.38 approximates between Strong Buy and Buy.
Of the 24 recommendations that derive the current ABR, 19 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 79.2% and 4.2% of all recommendations.
Brokerage Recommendation Trends for HWM
Check price target & stock forecast for Howmet here>>>
The ABR suggests buying Howmet, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is HWM Worth Investing In?Looking at the earnings estimate revisions for Howmet, the Zacks Consensus Estimate for the current year has increased 0.5% over the past month to $4.96.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Howmet. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Howmet may serve as a useful guide for investors.
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Teradyne Hits Record High, Joins 2 Best Stock Lists And Leads 17 Others To IBD 50, Big Cap 20, More Howmet Aerospace (HWM) climbed above a buy point and RBC Bearings (RBC) was close to a buy point as both companies exploit trends in aerospace, defense and even data centers. Howmet — which makes jet engine components, aerospace fasteners and airframe structural hardware — is receiving a wave of orders for commercial aerospace original equipment. Demand for engine spare parts…
Howmet (HWM - Free Report) ended the recent trading session at $270.44, demonstrating a +2.18% change from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 1.65%. Meanwhile, the Dow experienced a rise of 0.92%, and the technology-dominated Nasdaq saw an increase of 3.07%.
Prior to today's trading, shares of the maker of engineered products for the aerospace and other industries had gained 1.66% lagged the Aerospace sector's gain of 2.97% and outpaced the S&P 500's gain of 0.48%.
Market participants will be closely following the financial results of Howmet in its upcoming release. The company's earnings per share (EPS) are projected to be $1.21, reflecting a 32.97% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.42 billion, up 17.68% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $4.96 per share and a revenue of $9.72 billion, demonstrating changes of +31.56% and +17.8%, respectively, from the preceding year.
Any recent changes to analyst estimates for Howmet should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.48% increase. At present, Howmet boasts a Zacks Rank of #2 (Buy).
Looking at its valuation, Howmet is holding a Forward P/E ratio of 53.34. This denotes a premium relative to the industry average Forward P/E of 22.85.
One should further note that HWM currently holds a PEG ratio of 2.13. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Aerospace - Defense industry stood at 1.55 at the close of the market yesterday.
The Aerospace - Defense industry is part of the Aerospace sector. Currently, this industry holds a Zacks Industry Rank of 104, positioning it in the top 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Howmet (HWM - Free Report) reported $2.31 billion in revenue for the quarter ended March 2026, representing a year-over-year increase of 19.1%. EPS of $0.86 for the same period compares to $0.86 a year ago.
The reported revenue represents a surprise of +3.41% over the Zacks Consensus Estimate of $2.24 billion. With the consensus EPS estimate being $1.11, the EPS surprise was -22.4%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Howmet performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Total Sales- Engine Products: $1.26 billion versus the two-analyst average estimate of $1.21 billion. The reported number represents a year-over-year change of +25.8%.Total Sales- Fastening Systems: $471 million versus $470.99 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +14.3% change.Total Sales- Engineered Structures: $302 million versus $295.78 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +6% change.End Market Revenue- Commercial Transportation: $346 million versus $317.6 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +13.4% change.End Market Revenue- Aerospace- Commercial: $1.22 billion versus $1.19 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +19.6% change.End Market Revenue- Aerospace- Defense: $366 million versus $369.38 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +9.9% change.Total Sales- Forged Wheels: $295 million compared to the $264.6 million average estimate based on two analysts. The reported number represents a change of +17.1% year over year.Adjusted EBITDA- Engine Products: $458 million versus $419.85 million estimated by two analysts on average.Adjusted EBITDA- Forged Wheels: $90 million versus the two-analyst average estimate of $75.41 million.Adjusted EBITDA- Engineered Structures: $66 million versus $65.08 million estimated by two analysts on average.Adjusted EBITDA- Fastening Systems: $150 million versus $148.85 million estimated by two analysts on average.View all Key Company Metrics for Howmet here>>>
Shares of Howmet have returned +7.3% over the past month versus the Zacks S&P 500 composite's +11% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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, /PRNewswire/ -- Howmet Aerospace Inc. (NYSE: HWM) announced today that John C. Plant, Executive Chairman and Chief Executive Officer, will speak at Bernstein's 42nd Annual Strategic Decisions Conference (SDC) on Wednesday, May 27th, 2026, at 8:00 AM ET.
A real-time webcast of the event will be available on the "Investors/Events and Presentations" section of www.howmet.com, where a webcast replay will be available for 90 days following the presentation.
About Howmet Aerospace
Howmet Aerospace Inc., headquartered in Pittsburgh, Pennsylvania, is a leading global provider of advanced engineered solutions for the aerospace, gas turbine, and transportation industries. The Company's primary businesses focus on engine components, fastening systems, and airframe structural components necessary for mission-critical performance and efficiency, including in aerospace, defense, and gas turbine applications, as well as forged aluminum wheels for commercial transportation. With approximately 1,200 granted and pending patents, the Company's differentiated technologies enable lighter, more fuel-efficient aircraft and commercial trucks to operate with a lower carbon footprint. For more information, visit www.howmet.com.
Dissemination of Company Information
Howmet Aerospace intends to make future announcements regarding Company developments and financial performance through its website at www.howmet.com.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Let's take a look at what these Wall Street heavyweights have to say about Howmet (HWM - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Howmet currently has an average brokerage recommendation (ABR) of 1.38, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 24 brokerage firms. An ABR of 1.38 approximates between Strong Buy and Buy.
Of the 24 recommendations that derive the current ABR, 19 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 79.2% and 4.2% of all recommendations.
Brokerage Recommendation Trends for HWM
Check price target & stock forecast for Howmet here>>>
The ABR suggests buying Howmet, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is HWM Worth Investing In?In terms of earnings estimate revisions for Howmet, the Zacks Consensus Estimate for the current year has increased 9.9% over the past month to $4.83.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Howmet. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Howmet may serve as a useful guide for investors.
Key Takeaways Howmet commercial aerospace revenues rose 20% in Q1, accounting for 53% of sales.HWM Engine Products revenues jumped 29% on aerospace and gas turbine market strength.Boeing and Airbus production growth is supporting continued demand for Howmet products. The strongest driver of Howmet Aerospace Inc.’s (HWM - Free Report) business at the moment is the persistent strength in its commercial aerospace market. In the first quarter of 2026, the company’s revenues from the commercial aerospace market increased 20% year over year (exceeding $1.2 billion), which accounted for 53% of its quarterly sales. Strong air travel activities have been positive for the company, as the increased usage of aircraft has driven spending on parts and products that it provides.
This uptick significantly benefited Howmet’s Engine Products segment, which reported a 29% year-over-year revenue increase in the first quarter. The sustained strength was attributed to solid momentum in the commercial aerospace, defense aerospace and gas turbine markets. Driven by strength across the commercial and defense aerospace markets, revenues from the Fastening Systems segment also increased 14% year over year.
Boeing is witnessing a gradual production increase, particularly in the 737 MAX widebody aircraft, which is boosting demand for Howmet’s products in the market. Healthy build rates at Airbus for A320 (narrowbody) and A350 (widebody) aircraft also hold promise for HWM’s spare engine demand. With commercial aircraft programs expected to continue benefiting from the strength in air travel, HWM is poised to maintain strong demand momentum in the quarters ahead.
HWM’s Peers in the Commercial Aerospace MarketGE Aerospace (GE - Free Report) is benefiting from the solid demand for LEAP, GEnx & GE9X engines and services within the Commercial Engines & Services business. Revenues from the company’s Commercial Engines & Services business jumped 34% year over year to $8.92 billion in first-quarter 2026. In first-quarter 2026, the company received orders for more than 650 commercial engines, including commitments from American Airlines, United Airlines and Delta Airlines.
Improving commercial air passenger traffic has been benefiting Textron Inc.’s (TXT - Free Report) Aviation business unit. Strong fleet utilization, backed by improving commercial air travel, contributed to Textron Aviation unit’s revenue growth of 22% in the first quarter. Thanks to growing air travel, Textron has also been witnessing strong order activity, which resulted in a backlog of $8 billion (exiting first quarter) for the Aviation segment.
HWM's Price Performance, Valuation and EstimatesShares of Howmet have gained 9.2% in the past three months against the industry’s decline of 11.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, HWM is trading at a forward price-to-earnings ratio of 55.36X, above the industry’s average of 32.24X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HWM’s earnings has been on the rise over the past 60 days.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Investors might want to bet on Howmet (HWM - Free Report) , as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.
The upward trend in estimate revisions for this maker of engineered products for the aerospace and other industries reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
For Howmet, strong agreement among the covering analysts in revising earnings estimates upward has resulted in meaningful improvement in consensus estimates for the next quarter and full year.
The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:
12 Month EPS
Current-Quarter Estimate RevisionsFor the current quarter, the company is expected to earn $1.19 per share, which is a change of +30.8% from the year-ago reported number.
Over the last 30 days, the Zacks Consensus Estimate for Howmet has increased 8.08% because three estimates have moved higher compared to no negative revisions.
Current-Year Estimate RevisionsFor the full year, the earnings estimate of $4.83 per share represents a change of +28.1% from the year-ago number.
In terms of estimate revisions, the trend for the current year also appears quite encouraging for Howmet. Over the past month, four estimates have moved higher compared to no negative revisions, helping the consensus estimate increase 9.87%.
Favorable Zacks RankThanks to promising estimate revisions, Howmet currently carries a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom LineWhile strong estimate revisions for Howmet have attracted decent investments and pushed the stock 7.5% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.
Key Takeaways NVIDIA is benefiting from sustained AI infrastructure demand despite higher rates and slower growth.NVDA reported Q4 data-center revenues of $62.3B, up 75% year over year amid AI expansion.Howmet Aerospace raised 2026 guidance as defense spending and aircraft demand strengthen backlogs. Wall Street entered the second quarter of 2026 expecting rate cuts, but by late April and especially after the May inflation data, those expectations have weakened materially. Inflation has remained sticky, labor markets are still resilient and geopolitical tensions have pushed energy prices higher again.
As a result, investors are no longer chasing every growth theme indiscriminately. Capital is now concentrated in sectors that can either sustain earnings growth in a high-rate environment or benefit directly from inflationary and geopolitical pressures.
Against this backdrop, two sectors have become the primary focus of investors — AI-driven Technology and Energy/Defense with stocks like NVIDIA (NVDA - Free Report) and Howmet Aerospace (HWM - Free Report) attracting strong institutional inflows due to earnings visibility, pricing power and long-term demand resilience. Let’s delve deeper.
Sticky CPI, Stable Labor Market Drive Q2 Sector FocusAccording to the U.S. Bureau of Labor Statistics (BLS), consumer inflation accelerated in April 2026, with headline CPI (Consumer Price Index) rising 3.8% year over year compared with 3.3% in March. Energy inflation surged 17.9%, becoming one of the biggest factors behind renewed pricing pressure.
At the same time, the labor market has remained firmer than expected. The U.S. economy added 115,000 jobs in April, significantly above economists’ consensus forecasts of roughly 62,000 (Reuters), while unemployment held steady at 4.3%. March payrolls were also revised upward to 185,000. Although hiring has moderated from prior years, labor conditions remain sufficiently stable to prevent the Fed from pivoting aggressively toward monetary easing.
Financial markets reacted sharply after April inflation came in hotter than Reuters’ consensus estimates. U.S. headline CPI rose 3.8% year over year versus economists’ expectations of 3.7%, reinforcing concerns that the Federal Reserve may keep interest rates elevated for longer.
2 AI and Defense Stocks Gaining Focus in Q2
Image Source: Zacks Investment Research
AI-focused technologyremains one of the strongest themes in the second quarter of 2026, with NVIDIA continuing to attract investors seeking earnings resilience in a volatile macro backdrop. Unlike many cyclical technology companies, NVIDIA is benefiting from structural AI spending that remains largely unaffected by elevated interest rates and slowing economic growth. Hyperscalers, sovereign governments and enterprises are still aggressively expanding AI infrastructure, creating sustained demand for advanced GPUs and AI networking systems.
In its last-reported fiscal fourth-quarter 2026 release, NVIDIA reported data-center revenues of $62.3 billion, up 75% year over year. Management also highlighted growing adoption of agentic AI and introduced its next-generation Rubin AI platform, supporting long-term demand visibility. Strong partnerships with Microsoft, Amazon, Meta and OpenAI further position NVIDIA as a direct beneficiary of ongoing global AI-capex expansion.
This Zacks Rank #2 (Buy) stock has gained 28.5% since April 1. In the second quarter of fiscal 2027 (ending July 2026), the company is projected to report earnings growth of 82.9% over the year-ago reported number.
Image Source: Zacks Investment Research
Defense and Energy stocks are also gaining momentum in the April to June quarter, with Howmet Aerospace emerging as a strong beneficiary of rising global aircraft and defense demand. Persistent geopolitical tensions, expanding defense budgets and accelerating commercial-aircraft production have improved long-term order visibility across the aerospace supply chain. Unlike many industrial companies exposed to weaker consumer spending, Howmet benefits from long-cycle aerospace programs and sustained demand for high-performance engine components and fastening systems.
In its first-quarter 2026 earnings release, Howmet raised its full-year guidance after reporting strong growth across both commercial aerospace and defense markets. The company expects continued strength in jet-engine demand and robust aerospace backlog trends, indicating that defense modernization and aircraft-production expansion could continue supporting earnings growth through 2026.
This Zacks Rank #2 stock has gained 14.2% since April 1. In the second quarter of fiscal 2026 (ending June 2026), the company is projected to report earnings growth of 30.8% over the year-ago reported number. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Howmet Aerospace Inc. (HWM - Free Report) has emerged as one of the standout performers within the aerospace and industrial manufacturing space on Wall Street in 2026, significantly outperforming many peers in the broader industrials sector. While several manufacturing and defense-related companies have faced volatility from slowing global growth, tariff uncertainty and shifting investor sentiment, Howmet has continued to benefit from robust aerospace demand and strong execution across its Precision Metal Components and Engineered Solutions businesses.
The company, which supplies mission-critical components for aircraft engines, gas turbines and heavy trucks, has seen its stock surge sharply this year as investors rewarded its consistent earnings growth and expanding margins. Howmet’s shares have climbed more than 100% over the past year, substantially outpacing broader industrial benchmarks and several aerospace peers. Strong demand from commercial aviation has remained a major driver, particularly as Boeing and Airbus continue ramping up aircraft production to meet global travel demand.
Earnings Growth and Margin Expansion Impress InvestorsHWM reported first-quarter 2026 adjusted earnings of $1.22 per share, reflecting a 41.9% increase from the prior-year quarter. The figure also exceeded the Zacks Consensus Estimate of $1.11 per share. The company generated revenues of $2.31 billion during the quarter, marking a 19.1% year-over-year rise and topping the consensus estimate of $2.24 billion. The strong performance was driven by healthy demand across major end markets, particularly commercial aerospace and gas turbines.
Unlike many industrial manufacturers exposed to weaker cyclical markets, Howmet has benefited from its concentration in high-value aerospace systems and turbine technologies. Its Engine Products and Fastening Systems segments have delivered particularly strong growth, supported by demand for fuel-efficient aircraft and aftermarket engine components. Investors have also responded positively to the company’s improving profitability, share buybacks and raised 2026 guidance.
Turbine Exposure Strengthens Long-Term Growth StoryAnother factor supporting the stock has been the company’s exposure to structural growth themes, such as energy infrastructure and gas turbines. Market discussions increasingly highlight Howmet’s strong competitive position in turbine blade manufacturing, an industry with high barriers to entry and rising global demand.
As of May 19, HWM, which carries a Zacks Rank #2 (Buy), remains the only stock from the Zacks Aerospace - Defense industry that is not ranked #3 (Hold) or worse. Huntington Ingalls Industries, Inc. (HII - Free Report) and Embraer S.A. (EMBJ - Free Report) , two of its peers from the same industry, carry a #3 rank. HWM stock has soared 25.3% year to date against declines of 12.4% and 3.2% for Embraer and Huntington Ingalls, respectively. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Bottom LineWhile the stock has experienced occasional pullbacks alongside the broader aerospace sector, Howmet continues to emerge as one of the stronger names in industrial manufacturing due to its pricing power, diversified aerospace exposure and strong cash-flow generation.
Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a great growth stock is not easy at all.
That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.
However, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.
Howmet (HWM - Free Report) is on the list of such stocks currently recommended by our proprietary system. In addition to a favorable Growth Score, it carries a top Zacks Rank.
Studies have shown that stocks with the best growth features consistently outperform the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).
While there are numerous reasons why the stock of this maker of engineered products for the aerospace and other industries is a great growth pick right now, we have highlighted three of the most important factors below:
Earnings GrowthEarnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration.
While the historical EPS growth rate for Howmet is 40%, investors should actually focus on the projected growth. The company's EPS is expected to grow 29% this year, crushing the industry average, which calls for EPS growth of 12.5%.
Cash Flow GrowthWhile cash is the lifeblood of any business, higher-than-average cash flow growth is more important and beneficial for growth-oriented companies than for mature companies. That's because, growth in cash flow enables these companies to expand their businesses without depending on expensive outside funds.
Right now, year-over-year cash flow growth for Howmet is 31.2%, which is higher than many of its peers. In fact, the rate compares to the industry average of 8.3%.
While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 21.3% over the past 3-5 years versus the industry average of 12.2%.
Promising Earnings Estimate RevisionsSuperiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
There have been upward revisions in current-year earnings estimates for Howmet. The Zacks Consensus Estimate for the current year has surged 9.9% over the past month.
Bottom LineWhile the overall earnings estimate revisions have made Howmet a Zacks Rank #2 stock, it has earned itself a Growth Score of B based on a number of factors, including the ones discussed above.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This combination indicates that Howmet is a potential outperformer and a solid choice for growth investors.
Earnings Breakout Fuels New Record High Howmet Aerospace Inc. (HWM) reported Q1 2026 earnings pre-market on May 7, and its stock subsequently gapped up and broke out of a symmetrical triangle pattern into a new trend high. A new record high was established that day at $280.74, leading to the first pullback following the significant breakout. That advance completed a 127.2% Fibonacci extension at $280.05, where resistance subsequently emerged.
The company is an industrial and aerospace supplier of engineered components and has benefited from strong sector demand and a diversified product mix, helping support the bullish continuation that followed the earnings-driven breakout.
HWM daily chart shows first pullback after symmetrical triangle breakout Confluence Support Strengthens Bullish Case A retracement low of $250.85 was established on Tuesday, resulting in a higher swing low by Wednesday, as a one-day bullish reversal signal triggered. Support was validated by a confluence of support levels, including a 61.8% Fibonacci retracement at $251.43, the top boundary line of the triangle formation, and the 20-day moving average. This confluence increases the potential significance of the support zone and raises the chance that the retracement is over, allowing the bullish breakout trajectory to potentially resume. This new swing low is now a key near-term support level.
HWM has been in a strong bullish trend that has largely retained dynamic support above or near the 100-day moving average. Two recent declines found support again near the 100-day line. The successful test of support near the 20-day moving average sets the stage for it to become dynamic support for the near-term bull trend. If bullish momentum picks up, then the 10-day average should take the leading position as the nearest dynamic support indicator to price.
HWM weekly chart shows strong bull trend near 20-week average trend support Weekly Chart Reinforces Uptrend Structure The weekly chart shows the 20-week moving average marked as strong trend support since May 2025, along with the midline of a rising trend channel. Notably, support was seen for the week at $250.85, near a confluence zone formed by the channel midline and the 10-week moving average. The fact that those two indicators line up on the same week they are tested as support is also bullish as it provides additional confirmation of trend timing and underlying strength.
As mentioned above, the first Fibonacci extension upside target was met on the initial breakout thrust. This leaves the 161.8% Fibonacci extension at $296.26 as a potential target. There is also a measured move derived from the symmetrical triangle. Interestingly, it aligns closely with the extension target at approximately $296.81, further reinforcing the significance of the broader breakout structure first triggered following the May 7 earnings release.
If you’d like to know more about technical analysis and how traders use it, please visit our educational area.
Howmet Aerospace (HWM) is upgraded to Buy as earnings power and growth momentum strengthen, despite a demanding valuation. Q1 2026 saw revenue up 19% y/y, adj. EBITDA up 32% y/y, and adj. EPS up 42% y/y, driven by commercial aero spares and IGT. Commercial aero spares now comprise a larger, higher-margin revenue share, providing more durable growth less tied to new aircraft production.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Howmet (HWM - Free Report) .
Howmet currently has an average brokerage recommendation (ABR) of 1.38, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 24 brokerage firms. An ABR of 1.38 approximates between Strong Buy and Buy.
Of the 24 recommendations that derive the current ABR, 19 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 79.2% and 4.2% of all recommendations.
Brokerage Recommendation Trends for HWM
Check price target & stock forecast for Howmet here>>>
While the ABR calls for buying Howmet, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is HWM a Good Investment?Looking at the earnings estimate revisions for Howmet, the Zacks Consensus Estimate for the current year has increased 10.4% over the past month to $4.96.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Howmet. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Howmet may serve as a useful guide for investors.
Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. But finding a growth stock that can live up to its true potential can be a tough task.
By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.
However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.
Howmet (HWM - Free Report) is one such stock that our proprietary system currently recommends. The company not only has a favorable Growth Score, but also carries a top Zacks Rank.
Research shows that stocks carrying the best growth features consistently beat the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.
While there are numerous reasons why the stock of this maker of engineered products for the aerospace and other industries is a great growth pick right now, we have highlighted three of the most important factors below:
Earnings GrowthArguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.
While the historical EPS growth rate for Howmet is 40%, investors should actually focus on the projected growth. The company's EPS is expected to grow 31.6% this year, crushing the industry average, which calls for EPS growth of 12.6%.
Cash Flow GrowthCash is the lifeblood of any business, but higher-than-average cash flow growth is more beneficial and important for growth-oriented companies than for mature companies. That's because, high cash accumulation enables these companies to undertake new projects without raising expensive outside funds.
Right now, year-over-year cash flow growth for Howmet is 31.2%, which is higher than many of its peers. In fact, the rate compares to the industry average of 8.3%.
While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 21.3% over the past 3-5 years versus the industry average of 12.2%.
Promising Earnings Estimate RevisionsBeyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
The current-year earnings estimates for Howmet have been revising upward. The Zacks Consensus Estimate for the current year has surged 10.4% over the past month.
Bottom LineWhile the overall earnings estimate revisions have made Howmet a Zacks Rank #2 stock, it has earned itself a Growth Score of B based on a number of factors, including the ones discussed above.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This combination positions Howmet well for outperformance, so growth investors may want to bet on it.
Key Takeaways Howmet's defense aerospace revenues increased 10% year over year in first-quarter 2026.HWM's Engine Products segment posted 29% revenue growth, aided by defense aerospace demand.Strong defense funding and military-aircraft programs support Howmet's growth outlook. Howmet Aerospace Inc. (HWM - Free Report) is benefiting from strong momentum in its defense aerospace market. After experiencing growth of 21% in 2025, revenues from the defense aerospace market increased 10% year over year in first-quarter 2026. The surge in revenues was driven by the solid demand for engine spares, particularly related to the F-35 program, and an increase in orders for legacy fighter jet spares.
This solid momentum is significantly benefiting Howmet’s Engine Products segment, which reported 29% year-over-year revenue growth in the first quarter. With a solid pipeline of military-aircraft programs and a robust defense budget, HWM is poised to maintain strong demand momentum in the quarters ahead.
It's worth noting that the fiscal year 2026 Defense Appropriations Act was signed into law in February 2026, providing a strong budgetary allocation for defense. Such robust provisions set the stage for Howmet, which remains focused on its defense business.
The robust military funding enhances Howmet’s ability to secure new contracts. Backed by favorable geopolitical developments and consistent government support, the company’s defense aerospace market is well-placed for growth in the quarters ahead.
Segment Snapshot of HWM’s PeersHoneywell International Inc. (HON - Free Report) is benefiting from strong momentum in its defense and space business. In the first quarter of 2026, organic sales from Honeywell’s defense and space business increased 4% on a year-over-year basis. The increase in Honeywell’s revenues was fueled by stable U.S. and international defense spending volumes and sustained demand from the current geopolitical climate.
GE Aerospace (GE - Free Report) is benefiting from solid momentum in its Defense & Propulsion Technologies segment. In first-quarter 2026, GE Aerospace clinched a $1.4 billion deal for T408 engines to support the U.S. Marine Corps’ CH-53K helicopter fleet. Driven by strong bookings, revenues from the Defense & Propulsion Technologies segment increased 19% year over year and orders grew 67% in the first quarter.
HWM's Price Performance, Valuation and EstimatesShares of Howmet have surged 21.3% in the year-to-date period against the industry’s decline of 3.4%.
Image Source: Zacks Investment Research
From a valuation standpoint, HWM is trading at a forward price-to-earnings ratio of 46.31X, above the industry’s average of 32.07X. Howmet carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HWM’s 2026 earnings has increased 9% over the past 60 days.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the latest close session, Howmet (HWM - Free Report) was up +1.03% at $251.90. This change outpaced the S&P 500's 2.65% loss on the day. Elsewhere, the Dow lost 1.35%, while the tech-heavy Nasdaq lost 4.18%.
The maker of engineered products for the aerospace and other industries's stock has dropped by 8.52% in the past month, falling short of the Aerospace sector's gain of 7.19% and the S&P 500's gain of 5.47%.
The upcoming earnings release of Howmet will be of great interest to investors. On that day, Howmet is projected to report earnings of $1.21 per share, which would represent year-over-year growth of 32.97%. Our most recent consensus estimate is calling for quarterly revenue of $2.42 billion, up 17.68% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.96 per share and a revenue of $9.72 billion, signifying shifts of +31.56% and +17.8%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Howmet. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 10.39% higher. Howmet is currently sporting a Zacks Rank of #2 (Buy).
From a valuation perspective, Howmet is currently exchanging hands at a Forward P/E ratio of 50.25. For comparison, its industry has an average Forward P/E of 22.77, which means Howmet is trading at a premium to the group.
It is also worth noting that HWM currently has a PEG ratio of 2.01. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Aerospace - Defense industry stood at 1.56 at the close of the market yesterday.
The Aerospace - Defense industry is part of the Aerospace sector. Currently, this industry holds a Zacks Industry Rank of 93, positioning it in the top 39% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
The iShares U.S. Aerospace & Defense ETF (NYSEARCA:ITA) is sitting on a 34% one-year gain heading into June, with shares at roughly $235 and $13.5 billion in net assets. Two events in the next four weeks will largely decide whether ITA keeps running: the Pentagon’s FY2027 budget moving through Congress, and the June 29 Honeywell Aerospace spin-off that reshuffles the fund’s holdings. Both belong on the radar of any ITA holder.
What the fund actually owns ITA tracks the Dow Jones U.S. Select Aerospace & Defense Index at a 0.38% net expense ratio. GE Aerospace (NYSE:GE | GE Price Prediction) alone is 19% of net assets, with RTX at roughly 17% and Boeing (NYSE:BA) at nearly 9%. That top trio is roughly 44% of the portfolio. Adding General Dynamics and Lockheed Martin lifts the top five to roughly 54%. When people buy ITA, they are really buying GE, RTX, and Boeing, with a defense overlay.
The macro factor: the $1.45 trillion FY2027 budget The single biggest driver over the next 12 months is the $1.45 trillion FY2027 Department of War budget request, a roughly 42% increase over the FY2026 enacted level. Procurement is set to jump from $163.6 billion to $257.6 billion, with RDT&E moving to $218.8 billion. The request specifically funds $18 billion for Golden Dome and over $74 billion for drone and counter-drone systems, plus next-generation programs like the F-47 and B-21.
Watch appropriations markup language and any continuing resolution that delays procurement obligations past October 1. The data lives on the House and Senate Armed Services Committee pages and on Comptroller.defense.gov. Check monthly through summer markup, then weekly through September. Lockheed already telegraphed how this flows through, signing multi-year framework agreements for Patriot, THAAD, and PrSM that target 3 to 4 times current production rates. If the budget passes near the request, ITA’s defense primes get multi-year visibility. A CR that runs deep into FY2027 would extend that visibility.
The fund-specific factor: the June 29 Honeywell split Honeywell completes its aerospace spin-off on June 29, 2026, creating a separately traded Honeywell Aerospace under the ticker HONA. Honeywell does not currently appear in ITA’s March 31 snapshot, but the new pure-play HONA is a near-certain index addition at the next reconstitution. The Aerospace Technologies segment generated $4.32 billion in Q1 revenue at a 1.1x book-to-bill, so this is a meaningful new constituent.
For holders, watch the iShares website for the index methodology notice and the post-spin holdings file, typically posted within two trading days of an event. If HONA prices weakly out of the gate, ITA’s NAV absorbs that on the add. The opportunity is that a clean aerospace pure-play arrives just as GE Aerospace is guiding FY2026 EPS to $7.10 to $7.40 on a $170 billion commercial services backlog, validating the aftermarket thesis HONA will be sold on.
The supporting cast and one warning Howmet Aerospace (NYSE:HWM) raised FY2026 guidance to $4.88 to $5.00 in adjusted EPS after Engine Products grew 29%, though CEO John Plant flagged Iranian-conflict risk to engine spares demand. General Dynamics reported a 2-to-1 book-to-bill and $188.4 billion in estimated contract value. The warning sign is Lockheed: $125 million in F-16 charges compressed segment margins to about 10% from nearly 12%, and the stock is down 5% since earnings while the S&P rose nearly 7%. If C-130, CH-53K, or Seahawk charges repeat in Q2, that roughly 4.58% LMT position becomes a persistent drag.
What to watch in one line If Congress passes FY2027 defense appropriations near the $1.45 trillion request before October 1, ITA’s defense weighting carries another year of upside. The fund-specific signal is the post-June 29 holdings file: confirm HONA’s weight and watch whether GE Aerospace stays above 18%, because that single position drives the index more than any macro headline.
On June 11, 2026, Howmet Aerospace Inc HWM shares rose 6.1% to a current price of $264.60. Over the last year, the stock has shown impressive performance with a 55.3% increase, although it has faced a slight decline of 3.3% in the past month. The stock has traded within a 52-week range of $165.51 to $280.74.
GF Value™ verdict: Current price is $264.60, which is 91.3% above the GF Value™ of $138.30, indicating significant overvaluation.GF Score™: 82/100, which signifies a strong overall rating based on multiple factors.Most notable signal: Insider activity shows that insiders sold $11.3M worth of shares in the last 3 months without any buying. Is HWM Overvalued or Undervalued? Howmet Aerospace Inc HWM is currently trading significantly above its GF Value™ of $138.30, leading to a margin of safety of negative 91.3%. This valuation suggests that HWM is overvalued at its current price of $264.60. The GF Valuation label indicates that the stock is significantly overvalued, which poses a risk for potential investors. In such cases, the high valuation could lead to a correction in stock prices, especially if the market sentiment shifts or if the company's growth does not meet expectations.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Given the substantial gap between the current market price and the GF Value™, investors may need to exercise caution when considering this stock as a potential investment opportunity.
How Does HWM's Valuation Compare to Its History? MetricCurrentHistorical P/E (TTM)61.4x43.3x (5-Year Median) Forward P/E54.1x- The current P/E ratio of 61.4x is significantly above its 5-year median P/E of 43.3x, indicating that the stock is trading at a premium relative to its historical valuation. This analysis aligns with the GF Value™ verdict that suggests HWM is overvalued, as the elevated P/E ratio further indicates that the stock may not be justified at its current price level.
What Does HWM's GF Score™ Tell Us? MetricRating GF Score™82/100 Financial Strength7/10 Profitability8/10 Growth10/10 Valuation1/10 Momentum9/10 The GF Score™ of 82/100 reflects strong ratings in growth (10/10), profitability (8/10), and momentum (9/10). However, the valuation score is notably low at 1/10, highlighting concerns regarding the stock's current pricing relative to its intrinsic value. The combination of strong growth potential and profitability indicates that the company is performing well operationally, but the overvaluation reflected in the GF Score™ poses considerable risk to potential investors.
What Are Insiders Doing with HWM Stock? Recent insider activity shows that insiders have sold $11.3 million worth of shares over the last three months, with no reported insider buying during this period. This trend could signal a lack of confidence among insiders regarding the stock's current valuation and future performance. Typically, significant selling by insiders may raise red flags for potential investors, as it could suggest that those with the most knowledge about the company may not believe the stock is undervalued.
What This Means for Investors In summary, Howmet Aerospace Inc HWM appears to be overvalued based on its current price of $264.60 compared to the GF Value™ of $138.30. With a significant premium in its valuation and signals from insider trading, caution is warranted for those considering investment in this stock.
For the complete analysis, visit the Howmet Aerospace Inc HWM stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is HWM's GF Score™?
HWM's GF Score™ is 82/100, indicating a strong overall rating based on financial strength, profitability, growth, valuation, and momentum factors.
Is HWM overvalued or undervalued?
HWM is currently overvalued, with a GF Value™ of $138.30 compared to its market price of $264.60, indicating a significant overvaluation of 91.3%.
What is HWM's P/E ratio?
HWM's current P/E ratio is 61.4x, which is 42% above its 5-year median P/E of 43.3x, further supporting the conclusion that the stock is overvalued at its current price.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
