HWM faces commercial transport headwinds, but strength in aerospace and defense could help offset near-term pressure.
The latest trading day saw Howmet (HWM) settling at $173.34, representing a +1.83% change from its previous close.
HWM gains altitude as rising U.S. defense spending drives growth in its defense aerospace market and F-35 engine spare demand.
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HWM raises 2025 EPS outlook as Q1 earnings jump 51%, fueled by pricing power, cost control and strength in the aerospace markets.
Here is how Howmet (HWM) and Rolls-Royce Holdings PLC (RYCEY) have performed compared to their sector so far this year.
Howmet Aerospace Inc. is a critical, near-monopoly supplier of essential aircraft components, benefiting from high barriers to entry and surging demand from Boeing and Airbus. HWM financials are robust: Q1 '25 revenues up 6.5%, net income up 41.5%, and significant margin expansion across all business segments signal strong operational execution. Aggressive share buybacks, a doubled dividend, and powerful cash flow generation directly reward shareholders and reflect management's confidence in future growth.
HWM gains altitude as booming commercial aerospace sales drive 9% revenue growth and 104% stock surge year over year.
HWM nears its 52-week high after a 100% surge, backed by strong aerospace demand and robust defense spending.
Howmet Aerospace will need to produce more parts this year for engines used in Boeing and Airbus narrowbody jets, as the planemakers ramp up output and the need for spares grows, the parts supplier's CEO John Plant said on Friday.
Among the Zacks Rank #1 (Strong Buy) list, several Aerospace Defense stocks are standing out and have reached new 52-week highs this week.
These three market leaders are showing strong growth metrics and are poised to continue their outperformance.