Latest news with #HWM
Yahoo
4 days ago
- Business
- Yahoo
Howmet's Commercial Aerospace Growth Picks Up: A Sign of More Upside?
Howmet Aerospace Inc. HWM continues to strengthen its position in the commercial aerospace market, which remains its primary growth driver at the sustained strength reflects solid momentum in global air travel, which persisted through 2024 and continues into 2025. This strength in the commercial aerospace market has been driven by an increase in wide-body aircraft orders, encouraging original equipment manufacturers (OEMs) to increase their spending levels. For Howmet, this trend is particularly beneficial as higher aircraft utilization drives greater demand for maintenance parts and products that it produces. In the first quarter of 2025, revenues from the commercial aerospace market rose 9% year over year, constituting 52% of HWM's total are investing heavily in greener technologies as sustainability has become a key focus in aviation. The rise in HWM's revenues was attributed to growing popularity for new, more fuel-efficient aircraft, which, in turn, increased demand for its engine spares. Howmet remains well-positioned to capitalize on the favorable market dynamics, with the commercial aerospace sector continuing to demonstrate resilience and growth. Despite strong year-over-year growth, the commercial aerospace market has been facing a few challenges. The recovery in Boeing 787 and Airbus A350 production has been slower than expected due to delays and supply-chain disruptions. Among its major peers, RTX Corporation RTX reported 8% organic sales growth in the first quarter of 2025. This growth was largely driven by strength in the commercial aerospace market, where RTX Corp. saw double-digit gains in aftermarket sales and low-single-digit growth in OEM sales. The improvement in commercial aerospace sales boosted RTX's Collins Aerospace and Pratt & Whitney segments. Rising aircraft utilization and demand for sustainable technologies are supporting RTX Corp.'s Aerospace GE is benefiting from solid demand for LEAP, GEnx & GE9X engines and services within the Commercial Engines & Services business. This growth is supported by increasing air traffic, fleet renewal and expansion activities. During the first quarter of 2025, GE Aerospace signed new deals with three major customers. ANA Holdings ordered more than 75 LEAP engines and selected GE to supply GEnx engines for 18 new Boeing 787 aircraft. Malaysia Aviation Group placed an order for 60 LEAP engines and spare parts for its Boeing 737 MAX planes. GE Aerospace also received an order from Korean Air for GEnx and GE9X engines to power up to 50 wide-body Boeing jets. These contracts underscore GE's role in driving the growth of the commercial aerospace market globally. Shares of Howmet have surged 104% in the past year compared with the industry's growth of 19.9%. Image Source: Zacks Investment Research From a valuation standpoint, HWM is trading at a forward price-to-earnings ratio of 46.12X, above the industry's average of 26.59X. Image Source: Zacks Investment Research The Zacks Consensus Estimate for HWM's earnings has been on the rise over the past 60 days. Image Source: Zacks Investment Research The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. Want 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 GE Aerospace (GE) : Free Stock Analysis Report Howmet Aerospace Inc. (HWM) : Free Stock Analysis Report RTX Corporation (RTX) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-05-2025
- Business
- Yahoo
How to Find Strong Buy Aerospace Stocks Using the Zacks Rank
Building a successful investment portfolio takes skill and hard work, no matter if you're a growth, value, income, or momentum-focused investor. Howmet was upgraded to the Zacks Rank #1 list on May 27, 2025. The Zacks Rank is a unique stock-rating model that helps you take advantage of earnings estimate revision trends and provides a way to get into stocks highly sought after by institutional investors. Headquartered in Pittsburgh, PA, Howmet Aerospace Inc. provides engineered solutions for customers in the transportation and aerospace (both defense and commercial) industries. Notably, it offers forged wheels for commercial use in the transportation industry. It also provides aerospace fastening systems, components used in jet engines and structural parts made of titanium used in defense and aerospace applications. Seven analysts revised their earnings estimate higher in the last 60 days for fiscal 2025, while the Zacks Consensus Estimate has increased $0.20 to $3.46 per share. HWM also boasts an average earnings surprise of 8.8%. Earnings are expected to grow 28.6% for the current fiscal year, while revenue is projected to increase 8.5%. HWM has been moving higher over the past four weeks as well, up 14.9% compared to the S&P 500's gain of 6.4%. With a #1 (Strong Buy) ranking, positive trend in earnings estimate revisions, and strong market momentum, Howmet could be just the stock to help your portfolio generate returns that could fund your retirement, your kids' college tuition, or your short- and long-term savings goals. Want 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 Howmet Aerospace Inc. (HWM) : Free Stock Analysis Report Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
27-05-2025
- Business
- Yahoo
Buy 5 Aerospace Defense Stocks for Second-Half 2025 on Growing Demand
The aerospace defense industry has maintained its northbound journey amid supply-chain woes. Increased defense budget by the U.S. administration and impressive year-over-year projections for global air passenger numbers are likely to boost this space in the second half of 2025. At this stage, it will be prudent to invest in aerospace defense industry stocks with a favorable Zacks Rank for the rest of 2025. Five such stocks are: GE Aerospace GE, Howmet Aerospace Inc. HWM, Leidos Holdings Inc. LDOS, Huntington Ingalls Industries Inc. HII and Vertical Aerospace Ltd. EVTL. Each of our picks carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. While the commercial aerospace market overcame the woes of the pandemic and has been growing steadily over the past couple of quarters, the defense side of the industry stood its ground amid the COVID-19 crisis, cushioned by steady government support. To this end, it is worth noting that in May 2025, a White House report was published stating that President Donald Trump has proposed a 13% increase in the nation's defense spending to $1.01 trillion for fiscal year 2026. Such improved funding provisions set the stage for industry players focused on the defense business to win more contracts and expand their production volume, which is likely to boost their top Zacks-defined Aerospace – Defense Industry is currently in the top 16% of the Zacks Industry Rank. Since it is ranked in the top half of the Zacks Ranked Industries, we expect the aerospace defense industry to outperform the market over the next three to six months. The chart below shows the price performance of our five picks in the past three months. Image Source: Zacks Investment Research GE Aerospace has been witnessing strength in its businesses, driven by robust demand for commercial engines, propulsion and additive technologies. Rising U.S. & international defense budgets, geopolitical tensions, positive airline & airframer dynamics and robust demand for commercial air travel augur well for the company. GE's portfolio-reshaping actions are likely to unlock values for its shareholders. GE raised its dividend by 28.6% to 36 cents per share in February 2025. For 2025, GE expects organic revenues to grow in the low-double-digit range from the year-ago level. GE Aerospace has an expected revenue and earnings growth rate of -6.8% and 19.6%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.3% over the last 30 days. Howmet Aerospace is benefiting from solid momentum in the commercial aerospace market, driven by robust build rates and wide-body aircraft recovery. HWM is also witnessing strength in its defense aerospace business on the back of rising U.S. & international defense budgets. Robust orders for engine spares for the F-35 program, spares and new builds for legacy fighters augur well for HWM. Given the strength in most of its served markets, HWM has built a sound liquidity position that supports its shareholder-friendly policies. Howmet Aerospace has an expected revenue and earnings growth rate of 8.5% and 28.6%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.6% over the last seven days. Leidos Holdings ended the first quarter of 2025 on a solid note, with both its earnings and revenues having surpassed their respective Zacks Consensus Estimates. LDOS' defense solutions continue to witness increased contract wins from the Pentagon and other U.S. allies. These contract wins enhanced LDOS' bookings, which, in turn, led to a solid backlog of $46.30 billion at the end of first-quarter 2025. The Trump administration's defense budget proposal includes significant investment for the development and deployment of a Golden Dome for America, a next-generation missile defense shield that would protect the United States from missile threats coming from any adversary. LDOS believes that it is very well-positioned to contribute meaningfully to the Golden Dome mission, which will require next-generation sensor and missile defense capabilities, with its latest air and missile defense capability playing a vital role in the defense of Guam. Leidos Holdings has an expected revenue and earnings growth rate of 2.7% and 4.3%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.3% over the last 30 days. Huntington Ingalls Industries is a designer of nuclear-powered aircraft carriers and one of the two primary U.S. shipbuilders. HII has more than 100 years of experience in building ships, aircraft carriers and submarines. Thanks to the strong demand that Huntington Ingalls' products enjoy, its order value and hence the backlog count remain solid. Looking ahead, HII expects to launch DDG 129 Jeremiah Denton and complete sea trials for DDG 1000 in 2025. HII also aims to deliver DDG 128 Ted Stevens and LHA 8 Bougainville in 2026 and lay the keel for CVN 81 Doris Miller. As far as its submarine contracts are concerned, Huntington Ingalls christened SSN 800 Arkansas in the fourth quarter. HII plans to deliver SSN 798 and float off SSN 800, Arkansas, in 2025. Such a solid pipeline of products bolsters HII's revenue-generation prospects. Huntington Ingalls Industries has an expected revenue and earnings growth rate of 3.3% and 2.5%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 3.3% over the last 30 days. Vertical Aerospace is an aerospace and technology company that is engaged in designing, manufacturing, and selling zero-operating-emission electric vertical takeoff and landing (eVTOL) aircraft for use in the advanced air mobility market in the United Kingdom. EVTL is involved in developing its flagship VX4, an eVTOL aircraft. EVTL is pioneering zero-emission aviation. Vertical Aerospace has an expected revenue and earnings growth rate of 1% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved more than 100% over the last 30 days. Want 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 GE Aerospace (GE) : Free Stock Analysis Report Huntington Ingalls Industries, Inc. (HII) : Free Stock Analysis Report Leidos Holdings, Inc. (LDOS) : Free Stock Analysis Report Howmet Aerospace Inc. (HWM) : Free Stock Analysis Report Vertical Aerospace Ltd. (EVTL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
27-05-2025
- Business
- Yahoo
Buy 5 Aerospace Defense Stocks for Second-Half 2025 on Growing Demand
The aerospace defense industry has maintained its northbound journey amid supply-chain woes. Increased defense budget by the U.S. administration and impressive year-over-year projections for global air passenger numbers are likely to boost this space in the second half of 2025. At this stage, it will be prudent to invest in aerospace defense industry stocks with a favorable Zacks Rank for the rest of 2025. Five such stocks are: GE Aerospace GE, Howmet Aerospace Inc. HWM, Leidos Holdings Inc. LDOS, Huntington Ingalls Industries Inc. HII and Vertical Aerospace Ltd. EVTL. Each of our picks carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. While the commercial aerospace market overcame the woes of the pandemic and has been growing steadily over the past couple of quarters, the defense side of the industry stood its ground amid the COVID-19 crisis, cushioned by steady government support. To this end, it is worth noting that in May 2025, a White House report was published stating that President Donald Trump has proposed a 13% increase in the nation's defense spending to $1.01 trillion for fiscal year 2026. Such improved funding provisions set the stage for industry players focused on the defense business to win more contracts and expand their production volume, which is likely to boost their top Zacks-defined Aerospace – Defense Industry is currently in the top 16% of the Zacks Industry Rank. Since it is ranked in the top half of the Zacks Ranked Industries, we expect the aerospace defense industry to outperform the market over the next three to six months. The chart below shows the price performance of our five picks in the past three months. Image Source: Zacks Investment Research GE Aerospace has been witnessing strength in its businesses, driven by robust demand for commercial engines, propulsion and additive technologies. Rising U.S. & international defense budgets, geopolitical tensions, positive airline & airframer dynamics and robust demand for commercial air travel augur well for the company. GE's portfolio-reshaping actions are likely to unlock values for its shareholders. GE raised its dividend by 28.6% to 36 cents per share in February 2025. For 2025, GE expects organic revenues to grow in the low-double-digit range from the year-ago level. GE Aerospace has an expected revenue and earnings growth rate of -6.8% and 19.6%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.3% over the last 30 days. Howmet Aerospace is benefiting from solid momentum in the commercial aerospace market, driven by robust build rates and wide-body aircraft recovery. HWM is also witnessing strength in its defense aerospace business on the back of rising U.S. & international defense budgets. Robust orders for engine spares for the F-35 program, spares and new builds for legacy fighters augur well for HWM. Given the strength in most of its served markets, HWM has built a sound liquidity position that supports its shareholder-friendly policies. Howmet Aerospace has an expected revenue and earnings growth rate of 8.5% and 28.6%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.6% over the last seven days. Leidos Holdings ended the first quarter of 2025 on a solid note, with both its earnings and revenues having surpassed their respective Zacks Consensus Estimates. LDOS' defense solutions continue to witness increased contract wins from the Pentagon and other U.S. allies. These contract wins enhanced LDOS' bookings, which, in turn, led to a solid backlog of $46.30 billion at the end of first-quarter 2025. The Trump administration's defense budget proposal includes significant investment for the development and deployment of a Golden Dome for America, a next-generation missile defense shield that would protect the United States from missile threats coming from any adversary. LDOS believes that it is very well-positioned to contribute meaningfully to the Golden Dome mission, which will require next-generation sensor and missile defense capabilities, with its latest air and missile defense capability playing a vital role in the defense of Guam. Leidos Holdings has an expected revenue and earnings growth rate of 2.7% and 4.3%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.3% over the last 30 days. Huntington Ingalls Industries is a designer of nuclear-powered aircraft carriers and one of the two primary U.S. shipbuilders. HII has more than 100 years of experience in building ships, aircraft carriers and submarines. Thanks to the strong demand that Huntington Ingalls' products enjoy, its order value and hence the backlog count remain solid. Looking ahead, HII expects to launch DDG 129 Jeremiah Denton and complete sea trials for DDG 1000 in 2025. HII also aims to deliver DDG 128 Ted Stevens and LHA 8 Bougainville in 2026 and lay the keel for CVN 81 Doris Miller. As far as its submarine contracts are concerned, Huntington Ingalls christened SSN 800 Arkansas in the fourth quarter. HII plans to deliver SSN 798 and float off SSN 800, Arkansas, in 2025. Such a solid pipeline of products bolsters HII's revenue-generation prospects. Huntington Ingalls Industries has an expected revenue and earnings growth rate of 3.3% and 2.5%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 3.3% over the last 30 days. Vertical Aerospace is an aerospace and technology company that is engaged in designing, manufacturing, and selling zero-operating-emission electric vertical takeoff and landing (eVTOL) aircraft for use in the advanced air mobility market in the United Kingdom. EVTL is involved in developing its flagship VX4, an eVTOL aircraft. EVTL is pioneering zero-emission aviation. Vertical Aerospace has an expected revenue and earnings growth rate of 1% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved more than 100% over the last 30 days. Want 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 GE Aerospace (GE) : Free Stock Analysis Report Huntington Ingalls Industries, Inc. (HII) : Free Stock Analysis Report Leidos Holdings, Inc. (LDOS) : Free Stock Analysis Report Howmet Aerospace Inc. (HWM) : Free Stock Analysis Report Vertical Aerospace Ltd. (EVTL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
24-05-2025
- Business
- Yahoo
Should You Investigate Howmet Aerospace Inc. (NYSE:HWM) At US$165?
Howmet Aerospace Inc. (NYSE:HWM) led the NYSE gainers with a relatively large price hike in the past couple of weeks. The company's trading levels have reached its high for the past year, following the recent bounce in the share price. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock's share price. But what if there is still an opportunity to buy? Today we will analyse the most recent data on Howmet Aerospace's outlook and valuation to see if the opportunity still exists. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. The stock seems fairly valued at the moment according to our valuation model. It's trading around 5.49% above our intrinsic value, which means if you buy Howmet Aerospace today, you'd be paying a relatively reasonable price for it. And if you believe the company's true value is $156.49, there's only an insignificant downside when the price falls to its real value. So, is there another chance to buy low in the future? Given that Howmet Aerospace's share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility. View our latest analysis for Howmet Aerospace Future outlook is an important aspect when you're looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let's also take a look at the company's future expectations. Howmet Aerospace's earnings over the next few years are expected to increase by 61%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value. Are you a shareholder? It seems like the market has already priced in HWM's positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven't considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value? Are you a potential investor? If you've been keeping an eye on HWM, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it's worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop. So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. While conducting our analysis, we found that Howmet Aerospace has 2 warning signs and it would be unwise to ignore them. If you are no longer interested in Howmet Aerospace, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
