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?
Howmet Aerospace Inc (NYSE: HWM) pulled back after hitting a record high of $310.00 on Aug. 6, though the shares quickly found support at the $225 level, which also coincides with the 320-day moving average.
HWM's defense aerospace revenues are rising on strong demand for F-35 and legacy fighter jet spares, while new initiatives could support further growth.
Here is how Howmet (HWM) and RTX (RTX) have performed compared to their sector so far this year.
HWM's commercial aerospace strength, rising engine spares demand and CAM acquisition support momentum as Boeing and Airbus production rates improve.
Howmet Aerospace is upgraded to Buy after a recent 7.5% stock price decline, driven by overblown concerns about SpaceX's in-house turbine blade casting. HWM maintains a dominant >50% global market share in industrial gas turbine blades, with robust long-term agreements and active capacity expansions in Japan, Europe, and the U.S. SpaceX's initiative addresses its own supply bottleneck rather than competing at scale with HWM, limiting any real earnings or margin impact for HWM.
Howmet Aerospace Inc. (HWM) Presents at Jefferies Global Industrials Conference 2026 Transcript
Howmet (HWM) closed the most recent trading day at $231.53, moving 10.7% from the previous trading session.
HWM's 26.5% year-to-date rally is backed by aerospace demand and raised 2026 guidance, though rich valuation and SpaceX competition pose risks.
HWM's Forged Wheels volumes show early recovery, but weak transportation demand and supply-chain issues remain key risks.
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?
Howmet Aerospace is a buy after an overdone selloff triggered by SpaceX/Tesla's turbine blade plans, which pose no near-term threat. HWM's core moat is protected by technical expertise, multi-year backlogs, and sole-supplier long-term agreements across commercial and defense aerospace. Financial strength is evident: 24% YoY revenue growth, 37.7% EBITDA margin, $838M YTD free cash flow, and ongoing share repurchases and dividend increases.