Track market-moving stories before they get noisy

Brookstone Capital Management boosted its position in shares of Howmet Aerospace Inc. (NYSE: HWM) by 878.0% during the undefined quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 38,435 shares of the company's stock after acquiring an additional 34,505 shares during the quarter.

Diversify Advisory Services LLC grew its holdings in Howmet Aerospace Inc. (NYSE: HWM) by 63.3% in the undefined quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 11,214 shares of the company's stock after acquiring an additional 4,347 shares during the quarter. Diversify

In the latest trading session, Howmet (HWM - Free Report) closed at $211.63, marking a -3.82% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.28% for the day. Elsewhere, the Dow gained 1.02%, while the tech-heavy Nasdaq lost 0.02%.

The maker of engineered products for the aerospace and other industries's stock has dropped by 3.23% in the past month, exceeding the Aerospace sector's loss of 4.05% and lagging the S&P 500's gain of 0.67%.

Analysts and investors alike will be keeping a close eye on the performance of Howmet in its upcoming earnings disclosure. The company's earnings report is set to go public on October 29, 2026. The company is predicted to post an EPS of $1.37, indicating a 44.21% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $2.59 billion, up 23.98% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $5.34 per share and a revenue of $10.12 billion, demonstrating changes of +41.64% and +22.61%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for Howmet. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.19% rise in the Zacks Consensus EPS estimate. Howmet is currently a Zacks Rank #1 (Strong Buy).

In the context of valuation, Howmet is at present trading with a Forward P/E ratio of 41.2. This expresses a premium compared to the average Forward P/E of 23.12 of its industry.

We can additionally observe that HWM currently boasts a PEG ratio of 1.98. 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 Aerospace - Defense industry currently had an average PEG ratio of 1.62 as of yesterday's close.

The Aerospace - Defense industry is part of the Aerospace sector. With its current Zacks Industry Rank of 87, this industry ranks in the top 36% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

First Citizens Bank & Trust Co. lifted its position in Howmet Aerospace Inc. (NYSE:HWM – Free Report) by 552.7% in the 3rd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 6,821 shares of the company’s stock after purchasing an additional 5,776 shares during the quarter. First Citizens Bank & Trust Co.’s holdings in Howmet Aerospace were worth $1,543,000 as of its most recent SEC filing.

Other institutional investors have also recently modified their holdings of the company. West Paces Advisors Inc. acquired a new stake in shares of Howmet Aerospace during the second quarter worth about $27,000. Bartlett & CO. Wealth Management LLC increased its holdings in Howmet Aerospace by 55.1% in the 2nd quarter. Bartlett & CO. Wealth Management LLC now owns 107 shares of the company’s stock worth $29,000 after buying an additional 38 shares during the period. Markowski Investments acquired a new position in Howmet Aerospace in the 2nd quarter worth approximately $29,000. Retirement Wealth Solutions LLC increased its holdings in Howmet Aerospace by 328.1% in the 3rd quarter. Retirement Wealth Solutions LLC now owns 137 shares of the company’s stock worth $31,000 after buying an additional 105 shares during the period. Finally, Wilkerson Advisory Group LLC raised its position in Howmet Aerospace by 129.7% during the 1st quarter. Wilkerson Advisory Group LLC now owns 147 shares of the company’s stock worth $34,000 after buying an additional 83 shares during the last quarter. 90.46% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In A number of research firms have recently weighed in on HWM. TD Cowen cut their price objective on shares of Howmet Aerospace from $320.00 to $280.00 and set a “buy” rating on the stock in a research note on Friday, October 9th. Susquehanna boosted their target price on shares of Howmet Aerospace from $330.00 to $340.00 and gave the company a “positive” rating in a research report on Friday, August 7th. Royal Bank Of Canada lowered their price target on shares of Howmet Aerospace from $350.00 to $300.00 and set an “outperform” rating on the stock in a report on Thursday. Deutsche Bank Aktiengesellschaft upped their price target on shares of Howmet Aerospace from $338.00 to $343.00 and gave the company a “buy” rating in a report on Friday, August 7th. Finally, Weiss Ratings raised Howmet Aerospace from a “buy (b-)” rating to a “buy (b)” rating in a research report on Wednesday, August 19th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $310.29.

Get Our Latest Report on Howmet Aerospace Trending Headlines about Howmet Aerospace Here are the key news stories impacting Howmet Aerospace this week:

Positive Sentiment: Royal Bank of Canada maintained an “outperform” rating on Howmet Aerospace, indicating continued confidence in the company’s business outlook. Although RBC reduced its price target from $350 to $300, the new target still implies approximately 36.4% upside from the referenced share price. Benzinga article Positive Sentiment: Howmet’s board declared a quarterly dividend of $0.14 per share, payable November 25 to shareholders of record on November 6. The dividend provides a modest shareholder return and may signal confidence in ongoing cash generation. Howmet Aerospace Board Approves Common Stock Dividend Neutral Sentiment: Coverage continues to describe HWM as fairly valued based on cash-flow measures, suggesting that strong fundamentals are already reflected to a meaningful extent in the stock price. Howmet Aerospace Stock Looks Fairly Valued On Cash Flow Neutral Sentiment: Investors are also focusing on the upcoming quarterly earnings report, with results and management guidance likely to determine whether Howmet’s earnings growth can support further gains. Howmet Aerospace Quarterly Earnings Preview Negative Sentiment: Deutsche Bank lowered its price target from $343 to $310, and RBC also reduced its target. The revisions point to more cautious valuation assumptions, even though both firms’ updated targets remain above the current share price. Deutsche Bank Adjusts Price Target on Howmet Aerospace HWM opened at $219.89 on Friday. The company has a fifty day moving average of $246.45 and a two-hundred day moving average of $257.10. The stock has a market capitalization of $87.98 billion, a price-to-earnings ratio of 47.39, a PEG ratio of 1.96 and a beta of 1.21. Howmet Aerospace Inc. has a fifty-two week low of $187.46 and a fifty-two week high of $310.00. The company has a debt-to-equity ratio of 0.71, a quick ratio of 0.87 and a current ratio of 1.82.

Howmet Aerospace (NYSE:HWM – Get Free Report) last posted its earnings results on Thursday, August 6th. The company reported $1.33 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.24 by $0.09. Howmet Aerospace had a net margin of 20.52% and a return on equity of 33.91%. The business had revenue of $2.55 billion for the quarter, compared to analyst estimates of $2.43 billion. During the same period in the prior year, the company posted $0.91 EPS. The company’s revenue for the quarter was up 24.1% on a year-over-year basis. Howmet Aerospace has set its Q3 2026 guidance at 1.340-1.360 EPS and its FY 2026 guidance at 5.230-5.310 EPS. On average, research analysts expect that Howmet Aerospace Inc. will post 5.34 earnings per share for the current year.

Howmet Aerospace Announces Dividend The firm also recently declared a quarterly dividend, which will be paid on Wednesday, November 25th. Investors of record on Friday, November 6th will be issued a $0.14 dividend. The ex-dividend date of this dividend is Friday, November 6th. This represents a $0.56 dividend on an annualized basis and a yield of 0.3%. Howmet Aerospace’s dividend payout ratio is presently 12.07%.

Howmet Aerospace Company Profile (Free Report)

Howmet Aerospace Inc (NYSE:HWM) is an aerospace and industrial products company that develops and manufactures advanced engineered components and systems. Its products are used primarily in commercial and defense aircraft, aircraft engines, and other transportation and industrial applications.

The company’s principal businesses include engine products, fastening systems, engineered structures, and forged wheels. Its offerings include forged and cast engine components, airfoils, titanium and nickel-based parts, aerospace structural components, specialized fasteners, and forged aluminum wheels for commercial transportation.

Featured Articles Five stocks we like better than Howmet Aerospace ASML Can’t Keep Up With AI Demand—Why That’s a Good Thing Enovix’s 100,000-Battery Drone Order Sets Up a Test of Its Production Plans AMD’s Support Could Help Fermi Stock Overcome Its Biggest Hurdle Beyond the GPU: Credo Paves the Next AI Data Superhighway 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).

Receive News & Ratings for Howmet Aerospace Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Howmet Aerospace and related companies with MarketBeat.com's FREE daily email newsletter.

Assenagon Asset Management S.A. boosted its position in Howmet Aerospace Inc. (NYSE:HWM – Free Report) by 128.6% in the 3rd quarter, according to its most recent filing with the SEC. The firm owned 748,791 shares of the company’s stock after acquiring an additional 421,300 shares during the period. Assenagon Asset Management S.A. owned about 0.19% of Howmet Aerospace worth $169,362,000 at the end of the most recent reporting period.

Several other institutional investors also recently bought and sold shares of HWM. Ninety One UK Ltd purchased a new position in Howmet Aerospace during the third quarter worth approximately $444,000. Formuepleje A S purchased a new position in shares of Howmet Aerospace in the 3rd quarter worth $419,000. Nvwm LLC boosted its holdings in Howmet Aerospace by 1,035.7% in the third quarter. Nvwm LLC now owns 159 shares of the company’s stock valued at $36,000 after acquiring an additional 145 shares during the last quarter. HBW Advisory Services LLC boosted its holdings in Howmet Aerospace by 20.1% in the third quarter. HBW Advisory Services LLC now owns 3,530 shares of the company’s stock valued at $799,000 after acquiring an additional 591 shares during the last quarter. Finally, Mather Group LLC. boosted its holdings in Howmet Aerospace by 7.5% in the third quarter. Mather Group LLC. now owns 11,503 shares of the company’s stock valued at $2,602,000 after acquiring an additional 798 shares during the last quarter. 90.46% of the stock is currently owned by institutional investors and hedge funds.

Howmet Aerospace Trading Up 1.1% Shares of HWM opened at $219.89 on Friday. The company has a market capitalization of $87.98 billion, a P/E ratio of 47.81, a P/E/G ratio of 1.96 and a beta of 1.21. Howmet Aerospace Inc. has a one year low of $187.46 and a one year high of $310.00. The company has a debt-to-equity ratio of 0.71, a quick ratio of 0.87 and a current ratio of 1.82. The stock has a 50-day moving average price of $246.45 and a 200 day moving average price of $257.10.

Howmet Aerospace (NYSE:HWM – Get Free Report) last posted its quarterly earnings data on Thursday, August 6th. The company reported $1.33 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.24 by $0.09. Howmet Aerospace had a return on equity of 33.91% and a net margin of 20.52%. The company had revenue of $2.55 billion for the quarter, compared to the consensus estimate of $2.43 billion. During the same period in the previous year, the business earned $0.91 EPS. Howmet Aerospace’s revenue for the quarter was up 24.1% compared to the same quarter last year. Howmet Aerospace has set its Q3 2026 guidance at 1.340-1.360 EPS and its FY 2026 guidance at 5.230-5.310 EPS. Sell-side analysts forecast that Howmet Aerospace Inc. will post 5.34 EPS for the current fiscal year. Howmet Aerospace Announces Dividend The business also recently announced a quarterly dividend, which will be paid on Wednesday, November 25th. Stockholders of record on Friday, November 6th will be given a $0.14 dividend. The ex-dividend date of this dividend is Friday, November 6th. This represents a $0.56 annualized dividend and a dividend yield of 0.3%. Howmet Aerospace’s payout ratio is presently 12.07%.

Key Headlines Impacting Howmet Aerospace Here are the key news stories impacting Howmet Aerospace this week:

Positive Sentiment: Royal Bank of Canada maintained an “outperform” rating on Howmet Aerospace, indicating continued confidence in the company’s business outlook. Although RBC reduced its price target from $350 to $300, the new target still implies approximately 36.4% upside from the referenced share price. Benzinga article Positive Sentiment: Howmet’s board declared a quarterly dividend of $0.14 per share, payable November 25 to shareholders of record on November 6. The dividend provides a modest shareholder return and may signal confidence in ongoing cash generation. Howmet Aerospace Board Approves Common Stock Dividend Neutral Sentiment: Coverage continues to describe HWM as fairly valued based on cash-flow measures, suggesting that strong fundamentals are already reflected to a meaningful extent in the stock price. Howmet Aerospace Stock Looks Fairly Valued On Cash Flow Neutral Sentiment: Investors are also focusing on the upcoming quarterly earnings report, with results and management guidance likely to determine whether Howmet’s earnings growth can support further gains. Howmet Aerospace Quarterly Earnings Preview Negative Sentiment: Deutsche Bank lowered its price target from $343 to $310, and RBC also reduced its target. The revisions point to more cautious valuation assumptions, even though both firms’ updated targets remain above the current share price. Deutsche Bank Adjusts Price Target on Howmet Aerospace Analyst Upgrades and Downgrades Several brokerages have commented on HWM. Royal Bank Of Canada dropped their price target on Howmet Aerospace from $350.00 to $300.00 and set an “outperform” rating for the company in a research note on Thursday. Guggenheim initiated coverage on Howmet Aerospace in a report on Monday, September 14th. They issued a “buy” rating and a $350.00 price objective on the stock. Weiss Ratings raised shares of Howmet Aerospace from a “buy (b-)” rating to a “buy (b)” rating in a research report on Wednesday, August 19th. Deutsche Bank Aktiengesellschaft raised their target price on shares of Howmet Aerospace from $338.00 to $343.00 and gave the company a “buy” rating in a research note on Friday, August 7th. Finally, Morgan Stanley restated an “overweight” rating and set a $335.00 target price on shares of Howmet Aerospace in a report on Monday, August 10th. One analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat.com, Howmet Aerospace has an average rating of “Moderate Buy” and an average price target of $310.29.

Get Our Latest Report on Howmet Aerospace

Howmet Aerospace Profile (Free Report)

Howmet Aerospace Inc (NYSE:HWM) is an aerospace and industrial products company that develops and manufactures advanced engineered components and systems. Its products are used primarily in commercial and defense aircraft, aircraft engines, and other transportation and industrial applications.

The company’s principal businesses include engine products, fastening systems, engineered structures, and forged wheels. Its offerings include forged and cast engine components, airfoils, titanium and nickel-based parts, aerospace structural components, specialized fasteners, and forged aluminum wheels for commercial transportation.

Featured Stories Five stocks we like better than Howmet Aerospace ASML Can’t Keep Up With AI Demand—Why That’s a Good Thing Enovix’s 100,000-Battery Drone Order Sets Up a Test of Its Production Plans AMD’s Support Could Help Fermi Stock Overcome Its Biggest Hurdle Beyond the GPU: Credo Paves the Next AI Data Superhighway 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).

Receive News & Ratings for Howmet Aerospace Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Howmet Aerospace and related companies with MarketBeat.com's FREE daily email newsletter.

PITTSBURGH, Oct. 14, 2026 /PRNewswire/ -- The Board of Directors of Howmet Aerospace Inc. (NYSE: HWM) declared a dividend of 14 cents per share on the outstanding Common Stock of the Company, to be paid on November 25, 2026, to the holders of record of the Common Stock at the close of business on November 6, 2026. 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.

Key Takeaways Howmet's commercial aerospace revenues jumped 28% in Q2 2026, accounting for 53% of its total business.Engine Products revenues surged 32% to $1.37 billion, while Fastening Systems sales rose 37% to $589 million.Boeing and Airbus production trends and Howmet's $1.8 billion CAM acquisition bode well for future demand. Howmet Aerospace Inc. (HWM - Free Report) has been benefiting from strong momentum in the commercial aerospace market. Following year-over-year growth of 20% in first-quarter 2026, revenues from the commercial aerospace market increased 28% in the second quarter. The market constituted 53% of its overall business in the reported quarter.

This market strength significantly boosted Howmet’s Engine Products segment in the second quarter, which generated revenues of $1.37 billion, up 32% year over year. The top-line results were driven by robust demand for engine spares across commercial and defense aerospace markets, along with strength in the gas turbine market. Howmet’s Fastening Systems segment recorded revenues of $589 million, marking a 37% year-over-year increase, supported by solid demand in commercial and defense aerospace markets.

Boeing’s gradual production ramp-up, particularly for the 737 MAX narrowbody aircraft, is expected to sustain demand for Howmet in the coming quarters. Meanwhile, steady production rates for Airbus’ A320 narrowbody and A350 widebody aircraft also bode well for engine spare parts demand.

In April 2026, Howmet acquired Stanley Black & Decker, Inc.'s (SWK - Free Report) Consolidated Aerospace Manufacturing LLC (“CAM”) business for $1.8 billion. The acquisition, which strengthened HWM’s aerospace fastening solutions portfolio and engineering capabilities, is likely to increase its backlog conversion rate.

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 segment. In the second quarter of 2026, GE Aerospace’s engine deliveries within this segment increased 26% year over year, indicating better throughput as it works through customer demand. The Commercial Engines & Services segment’s revenues and orders jumped 27% and 18%, respectively, on a year-over-year basis in the quarter.

RTX Corporation (RTX - Free Report) reported 14.5% sales growth in the second quarter of 2026. This growth was driven by solid momentum in the commercial aerospace market, where RTX Corp. witnessed growth in aftermarket and OEM sales. An increase in commercial aerospace sales boosted RTX’s Collins Aerospace and Pratt & Whitney segments. Rising aircraft utilization and demand for sustainable technologies are supporting RTX Corp.’s growth.

HWM's Price Performance, Valuation and Estimates
Image Source: Zacks Investment Research

Shares of Howmet have gained 9.9% in the year-to-date period against the industry’s decline of 15.2%.

Image Source: Zacks Investment Research

From a valuation standpoint, HWM is trading at a forward price-to-earnings ratio of 36.63X, above the industry’s average of 27.53X.

Image Source: Zacks Investment Research

Howmet (HWM) closed the most recent trading day at $225.26, moving +1.21% from the previous trading session.

Key Takeaways Howmet's Q2 2026 adjusted EBITDA jumped 39% to $817 million, with margin expanding 340 bps to 32.1%.Strong aerospace and gas turbine demand fueled 24% revenue growth, while productivity gains lifted margins.Howmet raised its 2026 revenue outlook to $10-$10.1 billion and expects adjusted EBITDA margin of 32.1-32.2%. Howmet Aerospace Inc. (HWM - Free Report) achieved a solid adjusted EBITDA of $817 million in the second quarter of 2026, which surged 39% year over year. The company's adjusted EBITDA margin reached 32.1%, reflecting an increase of 340 basis points (bps). The adjusted operating margin also improved 350 bps to 28.8%.

Despite the rise in operating expenses, the improved margin performance reflects the benefits of strong top-line growth, operational leverage and productivity gains. It’s worth noting that Howmet reported revenues of $2.55 billion in second-quarter 2026, which increased 24% year over year. The revenues were driven by persistent strength across commercial aerospace, defense aerospace and gas turbine markets.

Solid demand across end markets, robust backlog level and expected synergies from the Consolidated Aerospace Manufacturing (CAM) buyout are expected to drive its top-line and margin performance. For 2026, Howmet raised its revenue outlook from $9.575-$9.725 billion to $10.00-$10.10 billion.

For the year, HWM expects adjusted EBITDA of $3.21-$3.25 billion, with margin projected in the range of 32.1-32.2%. The projected adjusted EBITDA margin indicates a year-over-year expansion of 280 bps at the midpoint. Also, for the third quarter of 2026, adjusted EBITDA is expected in the range of $825-$835 million, with a margin of 32.2-32.3%.

Peer’s Margin PerformanceTextron Inc.’s (TXT - Free Report) cost of sales rose 4.2% year over year to $3.09 billion in second-quarter 2026. Textron’s gross profit margin declined 100 bps to 17.8% in the quarter. The decline in Textron’s margin was due to reduced margin in the Bell segment.

RTX Corporation’s (RTX - Free Report) total costs and expenses increased 12.8% year over year to $22 billion in second-quarter 2026. Despite the rise in costs, RTX Corp.’s adjusted operating profit margin expanded 150 basis points (bps) to 11.4% in the quarter. RTX is benefiting from rising aerospace deliveries, growing aftermarket revenues and declining geared turbofan (GTF) engine-related cash costs.

HWM's Price Performance, Valuation and Estimates
Image Source: Zacks Investment Research

Shares of Howmet have gained 18% in the past year against the industry’s decline of 20.6%.

Image Source: Zacks Investment Research

From a valuation standpoint, HWM is trading at a forward price-to-earnings ratio of 36.29X, above the industry’s average of 27.69X. Howmet carries a Value Score of D.

Image Source: Zacks Investment Research

Howmet (HWM - Free Report) closed at $222.75 in the latest trading session, marking a -3.82% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.22% for the day. Elsewhere, the Dow saw a downswing of 0.66%, while the tech-heavy Nasdaq depreciated by 0.22%.

Shares of the maker of engineered products for the aerospace and other industries have appreciated by 0.03% over the course of the past month, outperforming the Aerospace sector's loss of 8.35%, and lagging the S&P 500's gain of 1.4%.

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 October 29, 2026. The company's upcoming EPS is projected at $1.36, signifying a 43.16% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $2.59 billion, up 23.98% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.33 per share and a revenue of $10.12 billion, signifying shifts of +41.38% and +22.61%, respectively, from the last year.

Investors should also pay attention to any latest changes in analyst estimates for Howmet. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.11% rise in the Zacks Consensus EPS estimate. Right now, Howmet possesses a Zacks Rank of #2 (Buy).

In the context of valuation, Howmet is at present trading with a Forward P/E ratio of 43.44. This denotes a premium relative to the industry average Forward P/E of 21.54.

It's also important to note that HWM currently trades at a PEG ratio of 2.09. 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. As of the close of trade yesterday, the Aerospace - Defense industry held an average PEG ratio of 1.66.

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 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

Central Pacific Bank Trust Division grew its holdings in Howmet Aerospace Inc. (NYSE:HWM – Free Report) by 65.8% during the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 8,282 shares of the company’s stock after purchasing an additional 3,287 shares during the quarter. Central Pacific Bank Trust Division’s holdings in Howmet Aerospace were worth $1,873,000 at the end of the most recent quarter.

A number of other hedge funds have also modified their holdings of HWM. BlackRock Inc. purchased a new position in Howmet Aerospace during the second quarter worth $12,318,939,000. State Street Corp boosted its stake in shares of Howmet Aerospace by 3.3% during the second quarter. State Street Corp now owns 18,933,928 shares of the company’s stock valued at $5,090,576,000 after acquiring an additional 612,866 shares during the last quarter. Bank of America Corp DE acquired a new stake in shares of Howmet Aerospace during the second quarter valued at $2,766,806,000. Jupiter Topco LLC purchased a new stake in Howmet Aerospace during the 2nd quarter worth about $2,065,086,000. Finally, Bank of New York Mellon Corp purchased a new stake in Howmet Aerospace during the 2nd quarter worth about $1,099,765,000. 90.46% of the stock is owned by hedge funds and other institutional investors.

Howmet Aerospace Stock Down 0.7% HWM opened at $229.61 on Tuesday. Howmet Aerospace Inc. has a 12 month low of $183.83 and a 12 month high of $310.00. The business has a 50-day moving average of $256.46 and a two-hundred day moving average of $257.83. The company has a debt-to-equity ratio of 0.71, a current ratio of 1.82 and a quick ratio of 0.87. The stock has a market capitalization of $91.87 billion, a price-to-earnings ratio of 49.48, a price-to-earnings-growth ratio of 2.08 and a beta of 1.21.

Howmet Aerospace (NYSE:HWM – Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The company reported $1.33 earnings per share for the quarter, topping the consensus estimate of $1.24 by $0.09. Howmet Aerospace had a net margin of 20.52% and a return on equity of 33.91%. The business had revenue of $2.55 billion for the quarter, compared to analyst estimates of $2.43 billion. During the same period in the prior year, the firm posted $0.91 EPS. The company’s revenue was up 24.1% on a year-over-year basis. Howmet Aerospace has set its Q3 2026 guidance at 1.340-1.360 EPS and its FY 2026 guidance at 5.230-5.310 EPS. On average, research analysts expect that Howmet Aerospace Inc. will post 5.33 earnings per share for the current year. Howmet Aerospace Increases Dividend The business also recently declared a quarterly dividend, which was paid on Tuesday, August 25th. Shareholders of record on Friday, August 7th were issued a $0.14 dividend. This is a boost from Howmet Aerospace’s previous quarterly dividend of $0.12. The ex-dividend date was Friday, August 7th. This represents a $0.56 dividend on an annualized basis and a dividend yield of 0.2%. Howmet Aerospace’s dividend payout ratio (DPR) is 12.07%.

Analyst Ratings Changes A number of research firms have issued reports on HWM. Royal Bank Of Canada upped their target price on shares of Howmet Aerospace from $325.00 to $350.00 and gave the company an “outperform” rating in a report on Friday, August 7th. UBS Group boosted their price objective on shares of Howmet Aerospace from $299.00 to $326.00 and gave the company a “neutral” rating in a research report on Friday, August 7th. BTIG Research upped their price objective on shares of Howmet Aerospace from $300.00 to $340.00 and gave the company a “buy” rating in a research note on Monday, August 10th. JPMorgan Chase & Co. raised their target price on shares of Howmet Aerospace from $310.00 to $350.00 and gave the stock an “overweight” rating in a research report on Monday, August 10th. Finally, Citigroup reaffirmed a “buy” rating on shares of Howmet Aerospace in a research note on Wednesday, September 30th. Two analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and three have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $314.84.

Read Our Latest Research Report on Howmet Aerospace

(Free Report)

Howmet Aerospace Inc (NYSE:HWM) is an aerospace and industrial products company that develops and manufactures advanced engineered components and systems. Its products are used primarily in commercial and defense aircraft, aircraft engines, and other transportation and industrial applications.

The company’s principal businesses include engine products, fastening systems, engineered structures, and forged wheels. Its offerings include forged and cast engine components, airfoils, titanium and nickel-based parts, aerospace structural components, specialized fasteners, and forged aluminum wheels for commercial transportation.

Featured Stories Five stocks we like better than Howmet Aerospace NVIDIA’s Record High Raises a Bigger Question About How Far the Rally Can Run A Manufacturing Surprise Could Be a Big Win for These 2 Companies What a $1 Billion Chip Deal Says About Amazon’s AI Ambitions 3 Stocks Benefiting From AI Demand Just Announced Major Buybacks

Receive News & Ratings for Howmet Aerospace Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Howmet Aerospace and related companies with MarketBeat.com's FREE daily email newsletter.

Key Takeaways Howmet shares gained 21.4% in the past year, outperforming the S&P 500 and its industry.HWM raised its 2026 revenue outlook to $10.00-$10.10 billion amid strong aerospace demand.Howmet's growth outlook is supported by engine spares demand, but high debt and valuation pose risks. Howmet Aerospace Inc.’s (HWM - Free Report) shares have gained 21.4% in the past year, outpacing the S&P 500’s gain of 15.4% and the industry’s 18.1% decline. The leading provider of jet engine components and fastening systems for the aerospace and transportation industries has also outshone its peers like Textron Inc. (TXT - Free Report) and L3Harris Technologies, Inc. (LHX - Free Report) , which have lost 11.6% and 22%, respectively, over the same time frame.

HWM Outperforms the Industry, S&P 500 & Peers
Image Source: Zacks Investment Research

Closing at $231.27 on Oct. 2, the stock is trading below its 52-week high of $310.00 but higher than its 52-week low of $183.83. However, the stock is trading below both its 50-day and 200-day moving averages. Let’s take a closer look at the company’s fundamentals, growth prospects and challenges to make an informed choice.

Factors Driving HowmetHowmet continues to benefit from robust commercial aerospace demand. Strong narrow- and wide-body aircraft activity is driving higher OEM spending, while increased air travel is boosting aircraft utilization and demand for the company’s parts and products.

Revenues from the commercial aerospace market rose 28% year over year in the second quarter of 2026, accelerating from 20% growth in the first quarter. The market accounted for 53% of HWM’s total business, driven by strong demand for engine spares. Solid A320 and A350 build rates at Airbus and the recovery in Boeing 737 MAX production are expected to support demand for HWM’s engine spares.

While the commercial aerospace market has remained the major driver for the company, the defense side of the industry has also been witnessing positive momentum, cushioned by steady government support. HWM has been experiencing robust orders for engine spares for the F-35 program and other legacy fighters. Revenues from the defense aerospace market increased 11% year over year in the second quarter, constituting 15% of the company’s total business.

Howmet expects demand across the commercial aerospace, defense aerospace and gas turbine markets to rise in 2026, supported by higher engine spares demand. The company raised its 2026 revenue outlook to $10.00-$10.10 billion. Adjusted EBITDA is anticipated between $3.21 billion and $3.25 billion, with adjusted earnings projected at $5.23-$5.31 per share.

Howmet’s shareholder-return initiatives remain supportive. In the first half of the year, HWM paid $97 million in dividends. In July 2026, the company increased its quarterly dividend 17% to 14 cents per share, or 56 cents annually. Through July, Howmet also repurchased $800 million of shares year to date.

Howmet’s measures to reward shareholders are also encouraging. During the first half of the year, HWM distributed $97 million in dividends. In July 2026, it raised its quarterly dividend by 17% to 14 cents per share, equivalent to 56 cents annually. Additionally, through July, the company had repurchased $800 million worth of shares year to date.

Howmet’s shareholder-friendly policies are supported by its healthy liquidity position. Exiting the second quarter, HWM’s cash equivalents were $563 million, higher than its short-term borrowings of $450 million. In the first half of the year, Howmet generated cash of $1.04 billion from operating activities (up 48% year over year), while its free cash flow totaled $838 million (up 75% year over year).

Earnings Estimate Revision
Image Source: Zacks Investment Research

Earnings estimates for HWM have moved north over the past 60 days, reflecting analysts’ optimism.

The Zacks Consensus Estimate for 2026 earnings is pegged at $5.33 per share, suggesting year-over-year growth of 7.2%. The consensus mark for 2027 earnings is pinned at $6.38 per share, indicating a year-over-year increase of 7.4%. As earnings estimates increase, the stock is likely to follow suit.

Near-Term ConcernsHowmet’s high debt level remains a concern. Exiting the second quarter of 2026, the company’s long-term debt (less amount due within one year) was $4.1 billion. The same stood at $2.86 billion at 2025-end. This increase was primarily attributable to funds raised for the company’s Consolidated Aerospace Manufacturing buyout (in April 2026).

HWM’s Valuation
Image Source: Zacks Investment Research

The stock trades at a forward 12-month price-to-earnings (P/E) ratio of 37.73X, higher than the industry average of 28.37X. Also, it is overvalued compared with its peers, Textron and L3Harris Technologies. Notably, Textron and L3Harris Technologies are trading at 10.85X and 18.03X, respectively. This elevated valuation could make the stock vulnerable to further pullbacks if market sentiment sours.

Final Take on HWMStrong trends across commercial and defense aerospace markets, driven by healthy production rates, engine spare demand and robust defense spending, support Howmet’s growth prospects. A solid liquidity position and shareholder-friendly actions further strengthen HWM’s investment appeal.

Despite its expensive valuation and rise in debt level, positive analyst sentiment, robust growth prospects and higher annual guidance for revenues and earnings indicate it is the appropriate time for potential investors to bet on this Zacks Rank #2 (Buy) company. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Howmet (HWM - Free Report) closed the most recent trading day at $228.51, moving +1.03% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.2%. At the same time, the Dow added 0.04%, and the tech-heavy Nasdaq gained 0.04%.

The maker of engineered products for the aerospace and other industries's shares have seen a decrease of 10.59% over the last month, not keeping up with the Aerospace sector's loss of 8.19% and the S&P 500's loss of 0.35%.

The investment community will be paying close attention to the earnings performance of Howmet in its upcoming release. It is anticipated that the company will report an EPS of $1.36, marking a 43.16% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $2.59 billion, up 23.98% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.33 per share and a revenue of $10.12 billion, signifying shifts of +41.38% and +22.61%, respectively, from the last year.

It is also important to note the recent changes to analyst estimates for Howmet. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 last 30 days, the Zacks Consensus EPS estimate has moved 0.11% higher. At present, Howmet boasts a Zacks Rank of #2 (Buy).

Looking at valuation, Howmet is presently trading at a Forward P/E ratio of 42.43. This valuation marks a premium compared to its industry average Forward P/E of 23.45.

We can also see that HWM currently has a PEG ratio of 2.04. 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 Aerospace - Defense was holding an average PEG ratio of 1.66 at yesterday's closing price.

The Aerospace - Defense industry is part of the Aerospace sector. With its current Zacks Industry Rank of 167, this industry ranks in the bottom 33% of all industries, numbering over 250.

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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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 1.29, 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 1.29 approximates between Strong Buy and Buy.

Of the 24 recommendations that derive the current ABR, 20 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 83.3% 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.

Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.

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 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.

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.

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.

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.

Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.

Is HWM a Good Investment?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 $5.33.

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.

The Zacks Aerospace-Defense industry is benefiting from rising geopolitical tensions, higher military spending and continued air-travel demand, as governments accelerate defense modernization and invest in advanced weapons. Long-term defense procurement and lifecycle-support programs are also providing contractors with greater revenue visibility and earnings stability. Persistent supply-chain constraints, labor shortages, limited aircraft availability and higher operating costs remain key headwinds that continue to affect production, deliveries and airline profitability. The leading companies in the aerospace-defense industry that you might want to keep an eye on are GE Aerospace (GE - Free Report) , RTX Corporation (RTX - Free Report) and Howmet Aerospace (HWM - Free Report) .

About the Industry The Zacks Aerospace-Defense industry comprises companies that primarily design and manufacture heavy-built products like commercial as well as military jets and helicopters, tankers and other combat vehicles, missiles, combatant ships as well as auxiliary ships, submarines, bombs, guns, space transportation vehicles, military satellites and a few more. The industry also includes cybersecurity players that offer information technology services and C4ISR (command, control, communications, computers, intelligence, surveillance and reconnaissance) solutions. A portion of its revenues comes from defense contractors offering spare parts, aircraft modification, ship repair and overhaul services, and supply-chain management services.

3 Major Trends in the Aerospace-Defense Industry Geopolitical Tensions & Rising Military Modernization: Heightened geopolitical uncertainty is prompting governments worldwide to accelerate defense modernization and expand military expenditures. As defense priorities shift toward strengthening national security, contractors are increasingly securing long-term procurement programs that extend beyond initial equipment sales to include sustainment, modernization, training and lifecycle support. These multi-year programs provide greater revenue visibility, improve cash flow stability and support sustained earnings growth.

The U.S. defense industry is seeing stronger demand as the Pentagon and allied governments shift spending toward next-generation military capabilities, including advanced weapons, missile defense, unmanned and autonomous platforms, space systems, cyber technologies and modern aircraft. Recent conflicts have underscored the importance of maintaining adequate inventories of missiles and munitions, encouraging governments to accelerate procurement and expand domestic defense production. According to a Markets and Markets report, the Military Platforms market was estimated at $38.75 billion in 2025 and is expected to reach around $76.25 billion by 2032, registering a CAGR of about 10.2% during the period. Market growth is primarily driven by sustained defense modernization programs, replacement of aging land, naval, and air platforms, and continued investment in higher-capability military systems.

Air Traffic View Boosts Opportunities: According to a report by the International Air Transport Association (“IATA”), global air passenger demand is expected to grow 2.1% year over year in 2026. IATA reported that global passenger demand returned to growth in July 2026, with Revenue Passenger Kilometers (“RPK”) increasing 0.2% year over year, following contractions in May and June. Capacity rose 0.3%, while the global passenger load factor remained high at 85.2%, indicating resilient underlying air-travel demand despite elevated fuel costs, economic uncertainty and geopolitical tensions. Defense companies, especially those tied to aerospace manufacturing and technology, benefit through technological advances and improved production economics.

Supply-Chain Issues Continue to Act as a Headwind: The Aerospace and Defense industry continues to face supply-chain challenges that originated during the pandemic, when a sharp decline in aircraft demand led suppliers to reduce production capacity, scale back investments and shrink their workforces. Although demand has recovered strongly, many suppliers are still struggling to ramp up production, resulting in shortages of critical components, longer lead times, and delays in aircraft manufacturing and deliveries. According to IATA, airlines are facing higher operating costs because supply-chain problems have made spare parts more expensive and harder to obtain. Airport fees, air traffic charges and aircraft ownership costs have also increased. With new aircraft in short supply, airlines are leasing older, mid-life planes at higher rates. These older aircraft also consume more fuel, further increasing overall expenses. IATA has highlighted that limited aircraft availability and labor shortages remain key supply-side challenges, while broader disruptions continue to delay the timely production and delivery of essential systems.

Zacks Industry Rank Reflects Gloomy Outlook The Zacks Aerospace-Defense industry is housed within the broader Zacks Aerospace sector. It currently carries a Zacks Industry Rank #179, which places it in the bottom 28% of more than 247 Zacks industries.

The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates bright near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

The industry’s position in the bottom 50% of the Zacks-ranked industries is due to a negative earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts have lost confidence in this group’s earnings growth potential over the past few months. The industry’s bottom-line estimate for the current fiscal year has moved down 0.5% to $3.86 since July 31.

Before we present a few aerospace-defense stocks that you may want to add to your portfolio, let’s take a look at the industry’s recent stock market performance and valuation picture.

Industry Lags S&P 500 & Sector The Aerospace-Defense industry has underperformed the Zacks S&P 500 composite and its sector over the past year. The stocks in this industry have collectively lost 14.3%, while the Zacks Aerospace sector has declined 12.3% during the same period. The Zacks S&P 500 composite has gained 16.9%.

One-Year Price Performance

 

Industry's Current Valuation Based on trailing 12-month EV/Sales, a valuation metric commonly used for capital-intensive industries like aerospace and defense, the industry is currently trading at 2.61X compared with 5.69X for the S&P 500 and 2.88X for the sector.

Over the past five years, the industry has traded as high as 3.34X, as low as 1.99X and at the median of 2.74X.

EV-Sales Ratio TTM

3 Aerospace-Defense Stocks to Buy GE Aerospace: Headquartered in Evendale, OH, GE Aerospace is a leading designer, developer and producer of jet engines, components and integrated systems for military, commercial and business aircraft. On Sept. 21, 2026, Kratos Defense and GE Aerospace successfully ignited the GEK800 turbofan propulsion system for a cruise missile at the X-58 test facility, achieving a 100% success rate in this critical development phase and keeping the program on schedule. On the aforementioned date, GE Aerospace announced a $225 million investment to modernize its Research Center in Niskayuna, NY, supported by $8.4 million in state tax credits and $5.3 million in local incentives, strengthening the facility’s role in developing next-generation aviation technologies.

The Zacks Consensus Estimate for GE’s 2026 sales calls for an increase of 19.5% year over year. The Zacks Consensus Estimate for 2026 earnings per share (EPS) indicates an improvement of 24.2% year over year. It currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 

Price & Consensus: GE

Howmet Aerospace: Headquartered in in Pittsburgh, PA, Howmet Aerospace provides engineered solutions for customers in the transportation and aerospace (both defense and commercial) industries. Howmet Aerospace reported a strong second-quarter 2026, with revenues rising 24% year over year to $2.55 billion and organic growth of 21%, while adjusted EPS jumped 46% to $1.33, reflecting strong demand across commercial aerospace, defense aerospace and gas turbines. Commercial aerospace revenues grew 28%, defense aerospace rose 11%, and gas turbines increased 38%, while Engine Products saw revenues rise 32%. HWM also generated $479 million in free cash flow, repurchased $300 million of shares and completed approximately $1.8 billion CAM acquisition during the quarter.

The Zacks Consensus Estimate for HWM’s 2026 sales calls for a 22.6% improvement year over year. The Zacks Consensus Estimate for 2026 EPS indicates an increase of 40.3% year over year. HWM currently has a Zacks Rank #2.

Price & Consensus: HWM

RTX: Based in Waltham, MA, RTX has emerged as an aerospace and defense company, providing advanced systems and services for commercial, military and government customers worldwide. On Sept. 28, 2026, RTX’s Raytheon unit announced plans to accelerate AMRAAM missile production to record levels under a five-year, multiyear contract, with two option years, valued at up to $20.7 billion. The contract was awarded as part of the Department of War’s Arsenal of Freedom. This provides Raytheon with significant multi-year demand and supports higher production volumes, strengthening RTX’s defense backlog and enabling further investment in manufacturing capacity, workforce and supply chain.

The Zacks Consensus Estimate for RTX’s 2026 sales calls for an increase of 8.4% year over year. The Zacks Consensus Estimate for 2026 EPS indicates a rise of 14.8% year over year. RTX currently has a Zacks Rank #2.

Price & Consensus: RTX

The $25k Day Trading Barrier is Gone. It's Time to Put Your Capital to Work.

For years, the PDT rule put a major roadblock in front of active traders. The barrier is no longer standing in the way.

But having more freedom doesn't mean every trade is worth taking. 

With Dynamite Day Trading Signals, you'll receive up to 2 options trade alerts per week, each targeting 50%+ gains in a single session.

NO holding positions overnight.

NO waiting weeks for a trade to develop.

Just focused options trades designed to capitalize on opportunities as they emerge.

👉 Get Access to Dynamite Day Trading Signals

Key Takeaways Howmet raised its 2026 revenue outlook to $10.00-$10.10 billion on strength across its businesses.Textron faces supply-chain challenges and uncertainty over $350 million in MV-75 funding for 2026.Howmet shares gained 10.9% year to date, while Textron stock declined 8.9%. Howmet Aerospace Inc. (HWM - Free Report) and Textron Inc. (TXT - Free Report) are two prominent names operating in the aerospace and defense industry. As rivals, both companies are engaged in producing highly engineered aircraft components for commercial and military aircraft in the United States and internationally.

Both companies are poised to benefit from significant growth opportunities in the aerospace and defense space on account of healthy air traffic trends and the robust U.S. budgetary policy over the past few years. But which company is better positioned to deliver upside in 2026? Let’s compare their fundamentals, growth prospects and challenges to see which stock stands out now.

The Case for HowmetHowmet is benefiting from persistent strength in its commercial aerospace market. Revenues from the commercial aerospace market increased 28% year over year in the second quarter of 2026, constituting 53% of its business. The top-line growth was driven by solid demand for engine spares and a record backlog for new, more fuel-efficient aircraft with reduced carbon emissions. Going forward, demand for Howmet’s aerospace products is expected to remain strong, backed by the healthy build rates at Airbus for A320 (narrowbody) and A350 (widebody) aircraft and production recovery of the Boeing 737 MAX aircraft.

Expanding defense budget remains another growth catalyst for the company. HWM continues to see strong demand for engine replacement parts tied to the F-35 program, along with components for other legacy fighters like F-15 and F-16. In the second quarter, revenues from the defense aerospace market surged 11% year over year, constituting 15% of the company’s revenues.

The company is also stepping up its focus on emerging programs, especially those involving drones and collaborative combat aircraft. Strong demand for industrial gas turbines is driving the performance of the gas turbines market, which grew 38% in the quarter.

Driven by strength across its businesses, Howmet raised its 2026 revenue outlook to $10.00-$10.10 billion. Adjusted EBITDA is anticipated between $3.21 billion and $3.25 billion, with adjusted earnings projected at $5.23-$5.31 per share.

In April 2026, HWM completed its $1.8 billion buyout of Consolidated Aerospace Manufacturing LLC (“CAM”), a business unit of Stanley Black & Decker (SWK - Free Report) . The acquisition enhanced HWM’s aerospace fastening solutions portfolio by adding CAM’s established brands, engineering capabilities and long-standing customer relationships.

HWM’s shareholder-rewarding policies are also encouraging. In the first six months of 2026, the company paid dividends of $97 million, and in July 2026, it hiked its dividend by 17% to 14 cents per share (annually: 56 cents). Additionally, through July, the company had repurchased $800 million worth of shares year to date.

The Case for TextronCommercial aircraft demand and aftermarket activity continue to support Textron’s Aviation business unit. In the second quarter of 2026, Textron Aviation unit’s revenues increased 1% year over year to $1.54 billion. The company has been witnessing strong order activity, which resulted in a backlog of about $8 billion for the Aviation segment. Such a robust backlog count strengthens Textron’s revenue-generating capacity in the coming quarters.

Besides its strong presence in the commercial aerospace market, Textron enjoys solid demand for its defense products as well. Revenues from the Bell segment increased 6% year over year to $1.1 billion in the second quarter, driven largely by higher H-1 and MV-75 volume, while commercial helicopter deliveries rose to 36 from 32.

Textron Systems also posted a 7% increase in revenues, driven by armored vehicles and ATAC services, while segment profit advanced 10%. Exiting the second quarter, Bell and Systems reported backlogs of $7.5 billion and $3.3 billion, respectively, providing support for visibility beyond near-term deliveries.

The company’s strong liquidity position also adds to its strength. Its cash and cash equivalents amounted to $1.4 billion at the end of the second quarter. While Textron’s long-term debt totaled $3.1 billion, its current debt was $355 million. Although the long-term debt value is higher, its current debt remains much lower than the cash reserve. It seems that the company boasts a solid solvency position, at least in the short term.

In the second quarter, the company also bought back $209 million worth of shares, bringing total repurchases for the first half of 2026 to $377 million. As a result, common shares outstanding declined to 171.9 million from 174.3 million at the end of 2025.

However, persistence of supply-chain issues arising out of component shortages and delays is expected to result in production delays for some of Textron’s products. For instance, in second-quarter 2026, Textron Aviation segment’s profit declined despite revenue growth, reflecting manufacturing inefficiencies and lower aircraft volume and mix.

Bell’s MV-75 program continues to face uncertainty over the timing of an additional $350 million funding request for 2026. Management’s full-year financial guidance assumes the receipt of the funding. Without additional funding, management anticipates adjusted earnings per share (EPS) could decline by 20-30 cents, while manufacturing cash flow could fall by $150-$250 million.

Price Performance
Image Source: Zacks Investment Research

In the year-to-date period, Howmet shares have gained 10.9%, while Textron stock has lost 8.9%.

The Zacks Consensus Estimate for HWM & TXT
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for HWM’s 2026 sales and EPS implies year-over-year growth of 22.6% and 40.3%, respectively. HWM’s EPS estimates for both 2026 and 2027 have increased 6.2% over the past 60 days.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for TXT’s 2026 sales and EPS implies year-over-year growth of 4.9% and 6.6%, respectively. However, TXT’s EPS estimates for 2025 and 2026 have declined 1.5% and 0.1%, respectively, over the past 60 days.

TXT’s Valuation More Attractive Than Howmet
Image Source: Zacks Investment Research

TXT is trading at a forward 12-month price-to-earnings ratio of 11.20X, below its median of 13.04X over the last three years. Howmet’s forward earnings multiple sits at 37.71X, close to its median of 38.93X over the same time frame.

Final Take on HWM & TXTTextron’s strong momentum in the commercial and defense aerospace markets, along with its robust pipeline of projects, favors well for its growth in the quarters ahead. A strong liquidity position in the short run is an added strength. However, this has been marred by supply-chain challenges and additional funding uncertainty for its Bell’s MV-75 program, which might affect its near-term performance.

In contrast, Howmet’s market leadership position and persistent strength in both commercial and defense aerospace markets provide it with a competitive advantage to leverage the long-term demand prospects in the aerospace market. Despite its steeper valuation, HWM seems to be a better pick than TXT currently due to strong estimates, stock price appreciation and better prospects for sales and profit growth.

While HWM carries a Zacks Rank #2 (Buy), TXT currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Investors with an interest in Aerospace - Defense stocks have likely encountered both Lockheed Martin (LMT - Free Report) and Howmet (HWM - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, both Lockheed Martin and Howmet are holding a Zacks Rank of #2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is only part of the picture for value investors.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

LMT currently has a forward P/E ratio of 17.67, while HWM has a forward P/E of 42.67. We also note that LMT has a PEG ratio of 1.17. 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. HWM currently has a PEG ratio of 2.05.

Another notable valuation metric for LMT is its P/B ratio of 14.16. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, HWM has a P/B of 15.76.

Based on these metrics and many more, LMT holds a Value grade of B, while HWM has a Value grade of F.

Both LMT and HWM are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that LMT is the superior value option right now.

The Aerospace group has plenty of great stocks, but investors should always be looking for companies 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? By taking a look at the stock's year-to-date performance in comparison to its Aerospace peers, we might be able to answer that question.

Howmet is one of 76 individual stocks in the Aerospace sector. Collectively, these companies sit at #2 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

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 5.7% 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 9.6% since the start of the calendar year. Meanwhile, stocks in the Aerospace group have lost about 9.1% on average. This means that Howmet is outperforming the sector as a whole this year.

One other Aerospace stock that has outperformed the sector so far this year is RTX (RTX - Free Report) . The stock is up 6.6% year-to-date.

In RTX's case, the consensus EPS estimate for the current year increased 4.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Howmet belongs to the Aerospace - Defense industry, a group that includes 39 individual stocks and currently sits at #104 in the Zacks Industry Rank. This group has lost an average of 9.3% so far this year, so HWM is performing better in this area. RTX is also part of the same industry.

Going forward, investors interested in Aerospace stocks should continue to pay close attention to Howmet and RTX as they could maintain their solid performance.

24.69K Followers

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Howmet Aerospace's (HWM.N) CEO said on Wednesday he is fine with a $12 billion deal by GE Aerospace (GE.N) to acquire a ​castings giant, even as the company's own growth to meet customers' ‌vast demand for jet engine parts is "testing us."

GE Aerospace announced plans on Tuesday to acquire Consolidated Precision Products (CPP) to address jet-engine supply bottlenecks, leading shares of Howmet, a major producer of castings, to close ​down 10%.

CEO John Plant told the Jefferies Global Industrials Conference in ​New York that Howmet remains confident in its own abilities even ⁠as he expects GE to invest in growing its smaller rival CPP through ​the acquisition.

"And you saw the intent, you know, yesterday was to look at ​developing it over the years. And I think we should be fine with that," Plant said.

"I know the question is, if there is additional investment and capacitization of CPP in the ​future, is that (to) the detriment of everybody else, or is it one ​of our competitors, or is it more aimed at the turbine side or the structural casting ‌side?"

Demand ⁠for engine parts is soaring as commercial planemakers and defense contractors ramp up production. Howmet also produces blades and vanes for gas turbines used in data centers, which are growing due to demand for AI.

"It is testing us in many ​ways because, you ​know, we hadn't ⁠thought we were going to be there building this amount of equipment," he said.

"The sheer scale of the capital expansion ​is certainly testing us."

Plant said he would give an ​update on ⁠Howmet's longer-term revenue goals within the next few earnings calls.

"My statement was that we would, from the 2025, we would see a doubling of our revenues somewhere ⁠in the ​three- to five-year time period," he said. "I think ​I'm going to update that not today, but you know it will be coming at some ​point."

When the world's commercial jet assembly lines stall, the root cause is almost always found deep inside the foundry. For years, aviation's recovery from the pandemic has struggled against a stubborn bottleneck: the high-pressure turbine blades, vanes, and complex engine castings at the heart of every engine.

GE Aerospace Today

GE

GE Aerospace

$324.76 -10.15 (-3.03%)

As of 02:10 PM Eastern

This is a fair market value price provided by Massive. Learn more.

$268.91▼

$388.840.58%

38.21

$390.59

GE Aerospace NYSE: GE altered that landscape by agreeing to acquire Consolidated Precision Products for about $11.75 billion. This deal would lock in GE's component supply for the industry's top propulsion programs, while creating an immediate ripple effect across the supply chain.

Get GE Aerospace alerts:

Shares of independent casting specialist Howmet Aerospace NYSE: HWM retreated around 10% on market concerns that GE would now make more of its parts in-house. However, when weighing industrial realities and long-term order books, the data points to an expanding super-cycle rather than a zero-sum conflict.

Examining the structure of this acquisition shows why both companies sit in an advantageous position.

GE Aerospace Captures Captive Casting PowerHigh-temperature investment castings represent the most demanding manufacturing stage in modern aviation. Foundries pour specialized nickel and cobalt superalloys into intricate single-crystal airfoils designed to run at temperatures that exceed the metal's own melting point.

These rotating blades and static vanes are essential to the CFM LEAP engine family, which equips most global narrowbody passenger jets. Because foundry output has set the pace of deliveries, owning the supplier would give GE Aerospace priority over its multi-year commercial backlog.

The transaction's financial mechanics show GE's balance-sheet discipline. The company intends to fund roughly $7 billion of the purchase price with cash on hand, covering the remainder through newly issued debt. Company leadership confirmed the purchase will boost adjusted earnings per share and free cash flow in the first full year after closing, leaving planned dividend distributions and capital allocation programs undisturbed. With annual revenue near $46 billion and net profit margins around 17.7%, GE Aerospace is moving idle cash into high-yield physical assets that insulate its assembly lines.

GE Aerospace Rewires Component ProductionConsolidated Precision Products has an established industrial footprint, comprising more than 20 production facilities and approximately 6,600 specialized workers across North America and Europe. Integrating an outside parts supplier of this scope requires steady coordination, which GE Aerospace intends to execute through its proprietary Flight Deck operating model. This lean manufacturing discipline reduces casting defects, improves metallurgical yields, and accelerates production cycle times across complex turbine cases and airfoils.

The regulatory outlook appears relatively clear. GE Aerospace and Consolidated Precision Products have maintained an active commercial relationship for more than 15 years, giving antitrust regulators a familiar, stable operating precedent.

Executives expect to secure regulatory clearances and complete the purchase in the second half of 2027. By shifting from customer to owner-operator, GE Aerospace aims to protect its assembly schedule from third-party logistics disruptions while eliminating vendor markups on profitable aftermarket replacement parts.

Howmet's Discount: Is the Drop a Hot-Metal OverreactionThe market responded to the transaction by sending Howmet Aerospace shares down roughly 10% to around $233 per share on elevated trading volume, as traders reassessed merchant demand.

This initial selling pressure assumes that internal sourcing at GE Aerospace will leave independent foundries with idle capacity. Industry fundamentals suggest otherwise. Casting capacity for advanced high-pressure hot sections remains in a severe multi-year deficit, with record backlogs across commercial airlines and defense programs that stretch into 2030.

Howmet Aerospace Inc. (HWM) Price Chart for Wednesday, September, 9, 2026

A secondary demand catalyst is accelerating alongside commercial aviation: natural gas power generation. The rapid global expansion of artificial intelligence data centers demands constant, reliable baseload electricity, prompting utilities to order high-efficiency industrial gas turbines that use the same single-crystal airfoil castings used in jet engines.

Howmet Aerospace serves both end markets from a position of financial strength. The company maintains net profit margins above 20%, an operating return on equity near 34%, and a conservative debt-to-equity ratio of about 0.71.

Backed by proprietary metallurgical patents and multi-year supply agreements with alternative propulsion manufacturers such as Pratt & Whitney, Safran OTCMKTS: SAFRY, and Rolls-Royce OTCMKTS: RYCEF, Howmet retains durable pricing power. The recent pullback offers investors an attractive entry into an irreplaceable industrial producer.

Flight Plan for Capital: Balancing GE Scale With Howmet ValueLooking at both stocks through an analytical framework offers two complementary ways to invest in the aerospace supply chain. GE Aerospace trades near $322 per share, carrying a trailing price-to-earnings ratio around 38x and a forward multiple near 41x. Wall Street consensus holds a Moderate Buy rating on the stock, with an average price target of about $391 and top-tier estimates reaching $455. Securing Consolidated Precision Products reinforces this earnings trajectory by removing output limitations on lucrative, long-term commercial engine maintenance agreements.

Howmet Aerospace trades near 43x forward earnings, down from highs that reflected component scarcity. Analysts maintain a consensus price target of roughly $316 per share on the company, presenting around 35% potential upside from recent prices. While GE provides primary exposure to complete engine assemblies and expanding free cash flow, Howmet offers unique metallurgical intellectual property paired with balance-sheet liquidity, reflected in a current ratio of about 1.82.

The global aerospace manufacturing base is experiencing structural reorganization, but market demand for complex cast components continues to outpace factory output. Investors who evaluate this transaction objectively can look past short-term trading sentiment and recognize that securing vital manufacturing capacity strengthens the operating environment for both aerospace leaders.

Should You Invest $1,000 in GE Aerospace Right Now?Before you consider GE Aerospace, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and GE Aerospace wasn't on the list.

While GE Aerospace currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

Robotics and automation are rapidly becoming essential infrastructure across healthcare, manufacturing, logistics, and many other industries. "Physical AI" is coming. Learn which seven companies are most positioned to benefit as intelligent robots enter the workforce.

Get This Free Report

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Key Takeaways Howmet shares are up 26.5% year to date, beating the S&P 500, its industry and major aerospace peers.Commercial aerospace revenues rose 28% in Q2 as aircraft build rates and engine-spares demand stayed strong.HWM raised 2026 revenue guidance to $10.00-$10.10B, while its 43.79X forward P/E exceeds peers and industry. Howmet Aerospace Inc.’s (HWM - Free Report) shares have surged 26.5% in the year-to-date period, outpacing the S&P 500’s gain of 12.2% and the industry’s 5.4% decline. The advanced engineered solutions provider for the aerospace and transportation industries has also outshone its peers like GE Aerospace (GE - Free Report) and RTX Corporation (RTX - Free Report) , which have returned 9.4% and 9.5%, respectively, over the same time frame.

HWM Outperforms the Industry, S&P 500 & Peers
Image Source: Zacks Investment Research

Closing at $259.27 on Sept. 4, the stock is trading below its 52-week high of $310.00 but significantly higher than its 52-week low of $176.32. The stock is trading below its 50-day moving average but way above its 200-day moving average.

Howmet Shares’ 50-Day and 200-Day SMA
Image Source: Zacks Investment Research

What’s Behind HWM Stock’s Momentum?The strongest driver of Howmet’s business at the moment is the commercial aerospace market. The company is benefiting from solid demand for both narrow and wide-body aircraft, which is supporting higher OEM spending. Pickup in air travel has been positive for the company, as the increased usage of aircraft spurs spending on parts and products that it provides.

Revenues from the commercial aerospace market increased 28% year over year in the second quarter of 2026, following an increase of 20% in the first quarter. The market constituted 53% of its overall business, supported by robust spares demand for engines. Healthy build rates at Airbus for A320 and A350 aircraft, along with a production recovery in the Boeing 737 MAX aircraft, hold promise for HWM’s spare engine demand.

Howmet is also benefiting from persistent strength in the defense aerospace business, cushioned by steady government support. HWM has been experiencing robust orders for engine spares for the F-35 program and other legacy fighters. Revenues from the defense aerospace market increased 11% year over year in the second quarter, constituting 15% of the company’s business.

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.

Driven by its business strength, Howmet raised its 2026 revenue outlook to $10.00-$10.10 billion. Adjusted EBITDA is anticipated between $3.21 billion and $3.25 billion, with adjusted earnings projected at $5.23-$5.31 per share.

HWM remains committed to strengthening its business through acquisitions. In April 2026, the company acquired Stanley Black & Decker, Inc.'s (SWK - Free Report) Consolidated Aerospace Manufacturing LLC (“CAM”) business for $1.8 billion. The buyout strengthened HWM’s aerospace fastening solutions portfolio through its established brands, engineering capabilities and deep customer relationships.

Howmet’s measures to reward shareholders are also encouraging. During the first half of the year, HWM distributed $97 million in dividends. In July 2026, it raised its quarterly dividend by 17% to 14 cents per share, equivalent to 56 cents annually. Additionally, through July, the company had repurchased $800 million worth of shares year to date.

Earnings Estimate Revision
Image Source: Zacks Investment Research

Earnings estimates for HWM have moved north over the past 60 days, reflecting analysts’ optimism.

The Zacks Consensus Estimate for 2026 earnings is pegged at $5.26 per share, suggesting year-over-year growth of 5.8%. The consensus mark for 2027 earnings is pinned at $6.22 per share, indicating a year-over-year increase of 5.1%. As earnings estimates increase, the stock is likely to follow suit.

Near-Term ConcernsHowever, Howmet’s shares declined recently after CEO Elon Musk announced that SpaceX intends to begin producing natural gas turbine blades at its Texas facility. This development is likely to bring a new competitive dynamic in the highly specialized turbine blade market, where Howmet has established a strong foothold. Nevertheless, HWM is poised to maintain strong demand momentum moving ahead with growing demand for industrial gas-turbine blades globally.

Stock Valuation
Image Source: Zacks Investment Research

The stock trades at a forward 12-month price-to-earnings (P/E) ratio of 43.79X, higher than the industry average of 30.74X. Also, it is overvalued compared with its peers, GE Aerospace and RTX Corp. Notably, GE Aerospace and RTX Corp. are trading at 39.02X and 26.44X, respectively. This elevated valuation could make the stock vulnerable to further pullbacks if market sentiment sours.

Should You Invest in HWM Stock Now?Persistent strength across both the commercial and defense aerospace markets, supported by strong build rates, spare demand for engines and a high defense budget, positions Howmet favorably for impressive growth in the quarters ahead. Built on a sound liquidity position, HWM’s shareholder-friendly policies also add to its appeal.

Despite its expensive valuation and likely competition from SpaceX in the turbine market, positive analyst sentiment, robust growth prospects and higher annual guidance for revenues and earnings indicate it is the appropriate time for potential investors to bet on this Zacks Rank #2 (Buy) company. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

8.9.2026 22:09

Zámořské akciové trhy zakončily dnešní obchodování v záporném teritoriu. Index Dow Jones klesl o 1,18 % na 52 786,28 bodu, S&P 500 si odepsal 0,58 % a technologický Nasdaq Composite ztratil 0,32 %. Hlavním důvodem poklesu byl růst cen ropy způsobený geopolitickým napětím na Blízkém východě, který opět rozproudil obavy z vyšší inflace a možného zvýšení úrokových sazeb ze strany centrální banky.

V rámci indexu S&P 500 se nejvíce dařilo energetickému sektoru s růstem o 1 %, utilitám se ziskem 0,9 % a realitám, které přidaly 0 %. Naopak nejvýraznější propad zaznamenala zdravotní péče se ztrátou 2,6 %, finanční sektor klesající o 1,4 % a základní materiály nižší o 0,9 %. Z jednotlivých akcií výrazně posílily společnosti Lumentum Holdings (LITE) o 11 %, Intel Corp (INTC) o 9,1 %, Corning (GLW) o 7,6 %, Coherent Corp (COHR) o 7,1 % a Hewlett Packard Enterprise (HPE) o 7,8 %. Naopak nejvýrazněji propadly akcie společností Amgen (AMGN) o 10 %, Howmet Aerospace (HWM) o 11 %, Stryker Corp (SYK) o 8,8 %, Expedia Group (EXPE) o 7,9 % a GoDaddy (GDDY) o 8,3 %.

Na dluhopisovém trhu rostly výnosy krátkodobých cenných papírů a výnos desetiletého amerického vládního dluhopisu mírně stoupl na 4,79 %. Měnový trh zůstal bez výraznějších změn, euro stagnovalo na úrovni 1,1623 USD a kurz japonského jenu se pohyboval kolem 154,30 JPY za dolar. Komodity zaznamenaly smíšený vývoj, když lehká ropa WTI posílila o 1 % na 92,43 USD za barel, zatímco spotové zlato mírně odepsalo 0,3 % na 4 392,74 USD za trojskou unci.

Index Dow Jones -1,18 % na 52786,28 b.
S&P 500 -0,58 % na 7673,51 b.
Nasdaq Composite -0,32 % na 26421,41 b.

Index S&P 500 -0,58 % na 7673,51 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Energie +1 % Zdravotní péče -2,6 % Utility +0,9 % Finanční sektor -1,4 % Reality +0 % Základní materiály -0,9 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Lumentum Holdings (LITE) +11 % Howmet Aerospace (HWM) -11 % Intel Corp (INTC) +9,1 % Amgen (AMGN) -10 % Hewlett Packard Enterprise (HPE) +7,8 % Stryker Corp (SYK) -8,8 % Corning (GLW) +7,6 % GoDaddy (GDDY) -8,3 % Coherent Corp (COHR) +7,1 % Expedia Group (EXPE) -7,9 %
Daniel Marván, Fio banka, a.s.

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 1.30, 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 1.30 approximates between Strong Buy and Buy.

Of the 23 recommendations that derive the current ABR, 19 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 82.6% 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.

Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.

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.

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.

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 5.5% over the past month to $5.26.

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.