Last Updated: 08 Nov 2024
Executive Summary
Howmet Aerospace Inc. (HWM) is a leading aerospace company with a market capitalization of $46.75 billion. The company manufactures components for jet engines, fasteners and titanium structures for aerospace applications, and forged aluminum wheels for heavy trucks. HWM has a strong financial position with an EBITDA of $1.78 billion and a profit margin of 14.8%. The company's stock is currently trading at $111.22, near its 52-week high of $115.30. Analysts are bullish on HWM, with a consensus target price of $110.37.
Company Overview
Howmet Aerospace was founded in 1922 and is headquartered in Pittsburgh, Pennsylvania. The company has operations in over 50 countries and employs approximately 13,000 people. HWM's products are used in a wide range of aircraft, including commercial airliners, military aircraft, and business jets. The company also supplies components to the automotive and industrial markets.
Fundamental Analysis
HWM has a strong financial position with a healthy balance sheet and strong cash flow. The company's revenue has grown steadily in recent years, and its profit margin has improved. HWM's earnings per share (EPS) is expected to grow by 10% in 2023. The company's return on equity (ROE) is 25.7%, which is well above the industry average.
Technical Analysis
HWM's stock price has been trending higher in recent months. The stock is currently trading above its 50-day and 200-day moving averages. The relative strength index (RSI) is also above 50, which indicates that the stock is in a bullish trend.
Short Term Outlook
HWM's stock is expected to continue to perform well in the short term. The company's strong financial position and positive earnings outlook are likely to support the stock price. The stock could also benefit from a continued recovery in the aerospace industry.
Long Term Outlook
HWM is well-positioned for long-term growth. The company's products are used in a wide range of aircraft, and the demand for air travel is expected to continue to grow in the coming years. HWM is also investing in new technologies, such as additive manufacturing, which could help the company to improve its margins and grow its market share.
Analyst Recommendations
Analysts are bullish on HWM. The consensus target price is $110.37, which represents a potential upside of 10% from the current price. Seven analysts have a strong buy rating on the stock, 14 have a buy rating, and two have a hold rating.
