Howmet Shares Fly High

HWM develops and manufactures metal products primarily for the aerospace industry. The Pittsburgh-based company’s primary lines of business include engines, fastening systems, engineered structures, and forged wheels. Sustained air transportation demand has driven the company’s shares higher.

Howmet increased revenues by 14% on a year-over-year basis to $1.9 billion in 2024’s second quarter. Healthy sales gains have strengthened HWM’s cash position, enabling it pay dividends and repurchase shares, to the tune of $42 million and $210 million, respectively, in the first six months of 2024.

It’s no wonder HWM shares have gained 92% this year – and they could grow more. Based on MAPsignals data, investors are betting heavily on the forward picture of the stock.

Big Money Loves Howmet Shares

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 (+8.6%)
• 3-year EPS growth rate (+59.1%)

Source: FactSet

The one-year EPS outlook is estimated to increase by +20.4%.

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…rising 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.