Howmet is Trading Near 52-Week High: Should You Buy the Stock?

Zacks11-11

Shares of Howmet Aerospace Inc. HWM have been showing impressive gains of late, trading close to its 52-week high of $115.38. The stock closed at $113.65 (on Friday), 1.5% below the highest point. In ...

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In ...</p>\n\n<a href=\"https://finance.yahoo.com/news/howmet-trading-near-52-week-153500411.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Howmet is Trading Near 52-Week High: Should You Buy the Stock?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nHowmet is Trading Near 52-Week High: Should You Buy the Stock?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-11 23:35 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/howmet-trading-near-52-week-153500411.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Shares of Howmet Aerospace Inc. HWM have been showing impressive gains of late, trading close to its 52-week high of $115.38. The stock closed at $113.65 (on Friday), 1.5% below the highest point. In ...</p>\n\n<a href=\"https://finance.yahoo.com/news/howmet-trading-near-52-week-153500411.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4585","symbol_name":"ETF&股票定投概念","start_time":0,"source_url":"https://finance.yahoo.com/news/howmet-trading-near-52-week-153500411.html","article_id":"2482753211","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/r4WblVWB2dtE_xl.Pjb5Gw--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/e43c2be6d449d928bb43187a3663aa6b"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2482753211","pubTimestamp":1731339300,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Shares of Howmet Aerospace Inc. HWM have been showing impressive gains of late, trading close to its 52-week high of $115.38. The stock closed at $113.65 , 1.5% below the highest point. In the past six months, shares of the advanced engineered solutions provider have surged 41.7%, outpacing the S&P 500’s and sub-industry’s growth of 14.9% and 2.5%, respectively.The company has also outperformed other industry players like L3Harris Technologies, Inc. LHX and Leidos Holdings, Inc. LDOS, which have returned 18.2% and 35.9%, respectively, over the said time frame.","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4585":"ETF&股票定投概念","LU0006061336.USD":"Blackrock US Small and MidCap Opportunities A2 USD","LHX":"哈里斯公司","GD":"通用动力","BK4588":"碎股","LU0170899867.USD":"EASTSPRING INVESTMENTS WORLD VALUE EQUITY  \"A\" (USD) ACC","BK4516":"特朗普概念","BK4123":"调查和咨询服务","LDOS":"Leidos Holdings Inc","IE00BFXG1179.USD":"BNY MELLON U.S. EQUITY INCOME \"B\" (USD) INC","HWM":"Howmet Aerospace Inc.","BK4566":"资本集团","BK4187":"航天航空与国防","BK4550":"红杉资本持仓","ROE":"ASTORIA US QUALITY KINGS ETF"},"translate_title":"Howmet的交易价格接近52周高点：您应该购买该股票吗？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"GD":1,"LDOS":1,"LHX":1,"ROE":1,"HWM":0.9},"content_text":"Shares of Howmet Aerospace Inc. HWM have been showing impressive gains of late, trading close to its 52-week high of $115.38. The stock closed at $113.65 (on Friday), 1.5% below the highest point. In the past six months, shares of the advanced engineered solutions provider have surged 41.7%, outpacing the S&P 500’s and sub-industry’s growth of 14.9% and 2.5%, respectively.The company has also outperformed other industry players like L3Harris Technologies, Inc. LHX and Leidos Holdings, Inc. LDOS, which have returned 18.2% and 35.9%, respectively, over the said time frame.\nHWM Outperforms Industry & S&P 500\nImage Source: Zacks Investment Research\nHWM stock is trading above both its 50-day and 200-day moving averages, indicating solid upward momentum and price stability. This reflects a positive market sentiment and confidence in the company's financial health and long-term prospects.\nHWM Shares Trading Above 50-Day and 200-Day SMA\nImage Source: Zacks Investment Research\nFactors in Favor\nHowmet has been benefiting from solid momentum in the commercial aerospace market. The strength in air travel continues, with wide-body aircraft demand picking up, thereby supporting continued OEM spending. Pickup in air travel has been a positive for the company as the increased usage of aircraft spurs spending on parts and products that it provides. Solid demand for air travel is also encouraging airlines to purchase more aircraft, which is again driving its sales. In the third quarter of 2024, revenues from the commercial aerospace market increased 17% year over year, constituting 52% of the company’s business. The sustained strength was attributed to new, more fuel-efficient aircraft with reduced carbon emissions and increased spare demand for engines. Boeing is also anticipated to witness a gradual production recovery with an end to its workers’ strike, which is likely to boost demand for HWM’s products in the market.Expanding defense budget remains another growth catalyst for Howmet. 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 witnessing robust orders for engine spares for legacy fighters. In the third quarter, revenues from the defense aerospace market increased 15% year over year, constituting 16% of the company’s revenues.It’s worth noting that the $886 billion defense policy bill, passed by the U.S. Government in December 2023, increased the nation's total national security budget by about 3%. Such improved budgetary provisions set the stage for Howmet's long-term growth, which remains focused on grabbing more defense contracts.Howmet’s sound liquidity position is an added strength. Exiting the third quarter, the company’s cash equivalents and receivables were $1.2 billion. It generated net cash of $818 million from operating activities in the first nine months of 2024, much higher than $443 million generated in the year-ago period. Howmet also generated a healthy free cash flow of $599 million in the first three quarters of the year.The company also remains focused on rewarding shareholders through dividend payouts and share repurchases. For instance, in the first nine months of the year, it paid dividends worth $76 million and repurchased shares for $310 million. In July 2024, the company hiked its dividend by 60% to 8 cents per share (annually: 32 cents). In the same month, its board also approved an increase in the share repurchase program by $2 billion to $2.487 billion of its common stock.\nEarnings Estimate Revision\nThe Zacks Consensus Estimate for Howmet’s 2024 earnings has increased 2% to $2.61 per share over the past 60 days, indicating year-over-year growth of 41.9%. The consensus mark for 2025 earnings is pinned at $3.12 per share, indicating year-over-year increase of 19.4%.\nFind the latest EPS estimates and surprises on Zacks Earnings Calendar.\nImage Source: Zacks Investment Research\nBetter-Than-Industry Returns\nHowmet’s trailing 12-month return on equity (ROE) is indicative of its growth potential. ROE for the trailing 12 months is 24.50%, much higher than the industry’s 11.73%. This reflects the company’s efficient usage of shareholder funds.\nImage Source: Zacks Investment Research\nReturn on Assets is 9.72%, ahead of the industry’s 3.10%, indicating that the company has been utilizing its assets efficiently to generate returns.\nImage Source: Zacks Investment Research\nStock Valuation\nDespite the positives, Howmet’s lofty valuation remains a concern. The stock is trading at a forward 12-month price-to-earnings (P/E) ratio of 37.25X, higher than the industry average of 22.24X. Also, it is overvalued compared with its peer, General Dynamics Corporation GD, which is trading at 19.54X. This elevated valuation could make the stock vulnerable to further pullbacks if market sentiment sours.\nImage Source: Zacks Investment Research\nOur Final Take\nRobust momentum across commercial and defense aerospace markets, driven by solid build rates, wide-body aircraft recovery and increased defense budget, positions Howmet favorably for strong growth in the quarters ahead. Given the strength across most of its served markets, HWM has built a sound liquidity position that supports its shareholder-friendly policies. Despite its expensive valuation, positive analyst sentiment and robust growth prospects indicate it is the right 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.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nGeneral Dynamics Corporation (GD) : Free Stock Analysis Report\nLeidos Holdings, Inc. (LDOS) : Free Stock Analysis Report\nL3Harris Technologies Inc (LHX) : Free Stock Analysis Report\nHowmet Aerospace Inc. (HWM) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2482753211"}