- Howmet Aerospace (HWM) delivered a 748.75% total return over five years, vastly outperforming the S&P 500 Index.
- Shares are up more than 105% over the past year.
- HWM maintains a 100% “Buy” technical opinion from Barchart.
- Fundamentals remain robust with strong projected revenue and earnings growth.
Author’s Note: HWM was last featured on Feb. 28, 2024, when it closed at $66.76. Since then, it has gained 381%. In the last 5 years, its total return was 748.75% compared to the S&P 500 Index at 90.24%. It came up again in my screener today.
Today’s Featured Stock
Valued at $100 billion, Howmet Aerospace (HWM) engages in providing engineered solutions for customers in the transportation, gas turbine, and aerospace (both defense and commercial) industries.
Howmet offers forged wheels under the Alcoa Wheels brand and surface treatment under the Dura-Bright brand. It also provides aerospace fastening systems. It has four reportable business segments: Engine Products, Fastening Systems, Engineered Structures, and Forged Wheels.
What I’m Watching
I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. HWM checks those boxes.
Barchart Technical Indicators for Howmet Aerospace
Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.
HWM scored an all-time high of $267.31 on March 2.
- Howmet has a Weighted Alpha of +98.73.
- It has a 100% “Buy” opinion from Barchart.
- The stock has gained 109.62% over the past 52 weeks.
- HWM has its Trend Seeker “Buy” signal intact.
- The stock recently traded at $254.14 with a 50-day moving average of $230.05.
- Howmet has made 7 new highs and is up 14.22% over the past month.
- Relative Strength Index (RSI) is at 60.37.
- There’s a technical support level around $247.09.
Don’t Forget the Fundamentals
- $100 billion market capitalization.
- 66.35x trailing price-earnings ratio.
- 0.19% dividend yield.
- Revenue is projected to grow 12.18% this year and another 11.99% next year.
- Earnings are estimated to increase 15.10% this year and an additional 16.21% next year.
Analyst and Investor Sentiment on Howmet Aerospace
- The Wall Street analysts followed by Barchart gave the stock 19 “Strong Buy,” 1 “Moderate Buy,” and 3 “Hold” opinions with price targets between $240 and $315.
- Value Line rates the stock “Above Average” with price targets between $151 and $329.
- CFRA’s MarketScope rates the stock a “Hold” with a price target of $266.
- Morningstar thinks the stock is 22% overvalued with a fair value of $204.77.
- 42 investors following the stock on Motley Fool think it will beat the market while none think it won’t.
- 105,730 investors are following the stock on Seeking Alpha, which rates it a “Hold.”
- Short interest is 2.74% of the float with 3.30 days to cover the float.
The Bottom Line on HWM
Defense stocks are hot right now. They have a very broad following from both professional and individual investors, and very low short interests.
Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.
On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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