Strong Stock Performance in Aerospace and Backup Power Sectors
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 26 2026
0mins
Source: Fool
- Aerospace Market Growth: In Q4 2025, Howmet Aerospace derived 53% of its revenue from the commercial aerospace sector, with the global aerospace market projected to grow from $434 billion in 2026 to $846 billion by 2035, driving future sales growth for the company.
- Significant Stock Performance: Howmet's stock has surged over 700% in the past five years and over 114% in the past year, although its current P/E ratio of 55 suggests potential short-term price adjustments, yet it remains an attractive long-term investment.
- Rising Backup Power Demand: Generac reported a 10% increase in sales to $400 million in its commercial and industrial division in Q4 2025, primarily driven by demand from data center customers, indicating strong growth potential in this sector.
- Optimistic Market Outlook: Despite Generac's stock declining over 35% in the past five years, its forward P/E ratio of 25 reflects optimism regarding data centers as a growing revenue source, making it a worthwhile long-term investment option.
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Analyst Views on HWM
Wall Street analysts forecast HWM stock price to fall
13 Analyst Rating
12 Buy
1 Hold
0 Sell
Strong Buy
Current: 272.540
Low
209.00
Averages
236.77
High
258.00
Current: 272.540
Low
209.00
Averages
236.77
High
258.00
About HWM
Howmet Aerospace Inc. is a global provider of advanced engineered solutions for the aerospace and transportation industries. The Company’s primary business focus is on jet engine components, aerospace fastening systems, and airframe structural components. Its Engine Products segment produces investment castings, including airfoils, and seamless rolled rings primarily for aircraft engines and industrial gas turbine applications. Its Fastening Systems segment produces aerospace fastening systems, as well as commercial transportation, industrial and other fasteners. Its Engineered Structures segment produces titanium ingots and mill products for aerospace and defense applications and is vertically integrated to produce titanium forgings, titanium extrusions, and machining services for airframe, wing, aero-engine, and landing gear components. Its Forged Wheels segment provides forged aluminum wheels and related products for heavy-duty trucks and the commercial transportation market.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Toyota's Decline: Toyota's shares have dropped 22.6% over the last three months, down 24% from February's peak, indicating market challenges that may impact its future performance.
See More
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- Market Weakness: On Thursday, the S&P 500 Index fell by 0.38%, the Dow Jones Industrial Average dropped by 0.63%, and the Nasdaq 100 Index decreased by 0.12%, reflecting investor skepticism regarding a potential US-Iran peace deal, which led to a reversal of early gains and impacted market confidence.
- Economic Data Support: Despite the market decline, initial jobless claims rose by 10,000 to 200,000, below the expected 205,000, indicating resilience in the labor market, while Q1 nonfarm productivity increased by 0.8%, surpassing the 0.6% forecast, providing some support to the market.
- Earnings Report Impact: As of Thursday, 84% of the 425 S&P 500 companies that reported earnings exceeded expectations, with Q1 earnings projected to rise by 12% year-over-year, although growth outside the tech sector is only expected to be around 3%, indicating a divergence that may influence investor allocation strategies.
- Oil Price Recovery: WTI crude oil prices rebounded after a 4% decline on Thursday, as the market focused on the potential resumption of US military operations to ensure safe passage through the Strait of Hormuz, which is expected to have ongoing implications for global oil prices and related stocks.
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- Market Retreat: The S&P 500 Index fell by 0.40%, the Dow Jones Industrial Average by 0.51%, and the Nasdaq 100 by 0.28%, indicating a retreat in market sentiment as rising oil prices weigh on investor confidence and raise concerns about future economic prospects.
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- Productivity and Costs: U.S. Q1 nonfarm productivity increased by 0.8%, surpassing expectations of 0.6%, while unit labor costs rose by 2.3%, below the anticipated 2.5%, which may influence future inflation expectations and Fed policy decisions.
- Fed Policy Outlook: Boston Fed President indicated that interest rates should remain at “mildly restrictive” levels, suggesting that if inflation trends worsen significantly, a reassessment of policy would be necessary, with markets pricing in only a 6% chance of a rate cut at the next FOMC meeting.
See More
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- Stable Labor Market: Initial jobless claims rose by 10,000 to 200,000, lower than the expected 205,000, indicating resilience in the labor market, while continuing claims unexpectedly fell by 10,000 to a 2.25-year low of 1.766 million, further enhancing market confidence.
- Crude Oil Price Decline: WTI crude oil prices fell by more than 4% as markets await updates on a potential US-Iran peace deal that could reopen the Strait of Hormuz, negatively impacting energy producers and leading to widespread declines in related stocks.
- Fed Policy Outlook: Boston Fed President indicated that interest rates should remain at
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- Jobless Claims Data: Recent figures indicate a decline in jobless claims, suggesting enhanced stability in the labor market, which positively impacts economic growth prospects and may encourage more businesses to increase hiring.
- AI Stock Decline: In contrast, AI company Arm's stock plummeted due to disappointing earnings, highlighting a divergence in market performance among tech stocks, prompting investors to carefully assess risks in the technology sector.
- Market Sentiment Fluctuation: Overall market sentiment fluctuates due to varying performances across sectors; while the Dow Jones index rises, the weakness in tech stocks may dampen overall investor confidence, leading to increased market volatility.
See More
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- Oil Price Decline: WTI crude oil prices fell by more than 4% today as the market awaits updates on a potential US-Iran peace deal that could reopen the Strait of Hormuz, impacting global oil prices and supply chains.
- Stable Labor Market: Initial US unemployment claims rose by 10,000 to 200,000, below expectations of 205,000, indicating labor market resilience, while continuing claims unexpectedly fell to a 2.25-year low of 1.766 million.
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