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Valued at $35.4 billion by market cap, Howmet Aerospace Inc. (HWM) is a leading player in the aerospace and transportation sectors. The Pittsburgh, Pennsylvania-based company provides advanced engineered solutions across four segments, specializing in products ranging from aerospace fasteners to forged aluminum wheels.
Shares of this aerospace and defense supplier have significantly outperformed the broader market over the past 52 weeks. HWM has surged 81.6% over this time frame, while the broader S&P 500 Index ($SPX) has gained 17%. In 2024 alone, HWM has risen 64.6%, notably ahead of SPX’s 9.9% increase on a YTD basis.
Zooming in further, HWM also outpaced the S&P Aerospace & Defense SPDR’s (XAR) 16% returns over the past 52 weeks. Moreover, HWM’s impressive double-digit YTD gain contrasts sharply with the exchange-traded fund’s 4.7% gain during the same period.
Howmet Aerospace has outperformed over the past year due to strong revenue growth driven by a robust commercial aerospace market. Moreover, the stock jumped 13.2% on Jul. 30 due to the company exceeding Wall Street's earnings expectations for Q2 and setting higher-than-forecasted full-year targets. Strong performance across its engine products and engineered structures segments, coupled with a positive outlook for commercial aerospace driven by robust demand and high OEM backlogs, further fueled investor enthusiasm.
For the current fiscal year, ending in December, analysts expect HWM to report EPS growth of 41.3% year over year to $2.60. The company's earnings surprise history is promising. It beat the consensus estimates in all of the last four quarters.
The consensus view on the stock is overall bullish. Among the 20 analysts covering the stock, the consensus rating is a “Strong Buy.” That’s based on 17 “Strong Buys,” one “Moderate Buy,” one “Hold,” and one “Strong Sell.”
This configuration is slightly more bullish than three months before, with 16 “Strong Buy” ratings.
On Aug. 5, BTIG Research raised its target price for Howmet Aerospace to $115, which is the street-high price target. This implies a potential upside of 29.1% from the current price levels.
The mean price target of $93 represents a premium of just 4.4% to HWM's current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
