Time to Buy Aerospace Defense Stocks for Higher Highs
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 29 2025
0mins
Should l Buy HWM?
Source: NASDAQ.COM
Aerospace Defense Stocks Performance: Several Aerospace Defense stocks, including Howmet Aerospace and Safran, have reached new 52-week highs due to increased global military spending and rising earnings estimates, with year-to-date gains of +55% and +35% respectively.
Growth Potential in the Industry: The Zacks Aerospace-Defense Equipment Industry shows a projected EPS growth rate of 18.54% for 2025, with companies like Astronics and Elbit Systems outperforming expectations, indicating potential for further investment opportunities.
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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: 239.040
Low
209.00
Averages
236.77
High
258.00
Current: 239.040
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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- 737 Fuselage Shipments Below Target: According to a report from BNP Paribas, Boeing's 737 fuselage shipments were only 38 in March, falling short of the 42 per month target, indicating ongoing production challenges that could negatively impact cash flow and market confidence.
- 787 Production Near Expectations: The production activity for the 787 program showed positive signs in March, with approximately 94 Dreamlifter flights tracked, suggesting output is close to the target rate of eight aircraft per month, which may enhance overall company performance.
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- Industry Profit Estimates: There has been a general reduction in profit estimates across the airline industry, yet Delta's stock remains relatively stable.
- Unusual Market Behavior: The current performance of Delta's stock is noted as unusual for the airline industry, which is typically more volatile.
See More
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- Delta Air Lines Performance: Delta Air Lines shares are down only 3% for the year, outperforming the S&P 500 despite industry challenges.
- Jet Fuel Price Impact: The airline is facing a significant 62% increase in jet fuel prices since February, which typically affects profitability.
- Industry Profit Estimates: There has been a general reduction in profit estimates across the airline industry, yet Delta's stock remains relatively stable.
- Unusual Market Behavior: The current performance of Delta's stock is noted as unusual for the airline industry, which often experiences more volatility.
See More
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- Physical Goods Surge: Companies producing physical goods are experiencing significant growth this year.
- AI-Disruptible Services Lag: In contrast, shares of service and software providers that are vulnerable to AI disruption are not performing as well.
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- AI-Disruptible Services Lag: Companies focused on AI-disruptible services and software are not keeping pace with those producing tangible products.
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