Earnings Growth Fuels Howmet Ascent

HWM develops and manufactures metal products primarily for the aerospace industry as well as for other industries too. The Pittsburgh-based company’s primary lines of business include engines, fastening systems, engineered structures, and forged wheels. HWM’s products end up on airplanes, trucks, and more around the world. Commercial and defense aerospace demand has driven the company’s shares higher.

As for its finances, Howmet’s fourth-quarter fiscal 2024 financial report showed a 9% rise in quarterly revenue and a 12% jump in annual revenue, along with a 40% increase in quarterly per-share earnings (to $0.76) and a 46% gain in annual EPS (to $2.69). Last year, the company reduced its debt by $365 million, bought back $500 million in shares, and paid out $109 million in dividends. HWM also announced a 25% raise in its quarterly dividend.

It’s no wonder HWM shares have gained 22% this year – and they could grow more. Based on MAPsignals data, investors are betting heavily on the forward picture of the stock.

Big Money Flying High with Howmet

Institutional volumes reveal plenty. In the last year, HWM has enjoyed heavy Big Money buying, which we believe to be institutional accumulation.

Each of the green bars signal unusually large volumes in HWM shares, pushing the stock higher:

Plenty of industrials names are under accumulation right now. But when you dive into the fundamentals, there’s a special tailwind going on with Howmet.

Howmet Fundamental Analysis

Institutional support coupled with a healthy fundamental backdrop makes this company worth investigating. As you can see, HWM has had strong sales and earnings growth:

• 3-year sales growth rate (+14.3%)
• 3-year EPS growth rate (+68.7%)

Source: FactSet

The one-year EPS outlook is estimated to increase by +21.3%.

Now it makes sense why the stock has been powering to new heights. HWM is gaining due to its strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

HWM has been a top-rated stock at MAPsignals for a while. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report multiple times in the last year. The blue bars below show when HWM was a top pick…flying higher along the way.

Tracking unusual volumes reveals the power of money flows.

This is a trait that most superstar stocks exhibit. Today’s money flows often reveal tomorrow’s leaders.

Howmet Price Prediction

The HWM rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in HWM at the time of publication.

If you are a Registered Investment Advisor (RIA) or a serious investor looking to take your investing to the next level, learn more about the MAPsignals process here.