Stock of the Day

Howmet Aerospace (HWM)

$175.28

+$0.27 (+0.2%)

Market Cap: $70.76B

About Howmet Aerospace

Howmet Aerospace Inc. provides advanced engineered solutions for the aerospace and transportation industries in the United States, Japan, France, Germany, the United Kingdom, Mexico, Italy, Canada, Poland, China, and internationally.

It operates through four segments: Engine Products, Fastening Systems, Engineered Structures, and Forged Wheels. The Engine Products segment offers airfoils and seamless rolled rings primarily for aircraft engines and industrial gas turbines; and rotating and structural parts. The Fastening Systems segment produces aerospace fastening systems, as well as commercial transportation, industrial, and other fasteners; and latches, bearings, fluid fittings, and installation tools. The Engineered Structures segment provides titanium ingots and mill products, aluminum and nickel forgings, and machined components and assemblies for aerospace and defense applications; and titanium forgings, extrusions, and forming and machining services for airframe, wing, aero-engine, and landing gear components. The Forged Wheels segment offers forged aluminum wheels and related products for heavy-duty trucks and commercial transportation markets. The company was formerly known as Arconic Inc. Howmet Aerospace Inc. was founded in 1888 and is based in Pittsburgh, Pennsylvania.

Howmet Aerospace Bull Case

Here are some ways that investors could benefit from investing in Howmet Aerospace Inc.:

• The stock recently reached a new 52-week high, indicating strong market performance and investor confidence, with the current stock price around $170.93.
• Howmet Aerospace Inc. reported a quarterly earnings per share (EPS) of $0.86, surpassing analysts' expectations, which reflects the company's robust financial health and operational efficiency.
• The company has shown a year-over-year revenue increase of 5.5%, suggesting growth potential and resilience in its business model.
• Analysts have a consensus rating of "Moderate Buy" for the stock, with several firms raising their price targets, indicating positive sentiment and potential for further appreciation.
• Howmet Aerospace Inc. operates in the aerospace and transportation industries, which are expected to benefit from increasing demand for advanced engineered solutions, positioning the company well for future growth.

Howmet Aerospace Bear Case

Investors should be bearish about investing in Howmet Aerospace Inc. for these reasons:

• Insider selling has been significant, with over 831,250 shares sold recently, which may raise concerns about the confidence of company executives in the stock's future performance.
• The stock has a high price-to-earnings (P/E) ratio of 60.96, which could indicate that it is overvalued compared to its earnings, making it a riskier investment.
• Despite recent growth, the company has a relatively low insider ownership of just 1.04%, which may suggest a lack of alignment between management and shareholder interests.
• The market cap of $69.37 billion indicates a large company, but it may also mean slower growth potential compared to smaller, more agile firms in the industry.
• The company has a debt-to-equity ratio of 0.74, which, while manageable, indicates that it relies on debt financing, potentially increasing financial risk in a rising interest rate environment.

Recent News

• Howmet Aerospace: Potential For Margin Erosion Amid Stretched Valuations (seekingalpha.com)
• Howmet Aerospace Shareholders Approve Key Proposals (tipranks.com)
• Here's How Much a $1000 Investment in Howmet Made 10 Years Ago Would Be Worth Today (msn.com)
• Howmet needs to ramp engine parts production as jet output rises, CEO says (reuters.com)