Stock Price & Analysis

Based on the provided data and current market conditions, here's a concise analysis for HWM stock:

Technical Analysis

The stock is currently trading at $127.74, showing strong momentum with an RSI of 73.31, indicating slightly overbought conditions. The stock is trading above its 20-day moving average of $116.35, suggesting a strong upward trend.

Analyst Consensus Recent analyst actions have been overwhelmingly positive, with multiple firms raising their price targets. Notable updates include:

• Truist Securities: $128 → $130 (Strong Buy)
• Wells Fargo: $129 → $132 (Buy)
• B of A Securities: $100 → $135 (Strong Buy)

Growth Drivers

• Strong commercial aerospace market momentum driven by increased air travel demand
• Robust defense sector outlook with steady government support
• Expected above-trend growth in commercial aerospace through fiscal 2025

Key Considerations

• The company is expected to report Q4 earnings with EPS of $0.71, representing a 34% YoY increase
• Analysts project fiscal 2024 adjusted EPS of $2.66 and fiscal 2025 EPS of $3.18, indicating sustained growth
• Commercial transportation market expected to remain soft until Q2 2025

Recommendation Given the strong analyst consensus, robust aerospace market outlook, and positive technical indicators, HWM appears to be a HOLD at current levels. While the long-term outlook remains positive, the slightly overbought RSI suggests waiting for a potential pullback before establishing new positions.

Based on the provided data and analysis, here is the price prediction for HWM stock in 2025:

HWM stock is expected to reach $138-144 by end of 2025, driven by strong commercial aerospace demand and continued margin expansion. The company's robust Q3 2024 performance with adjusted EPS of $0.71 beating estimates, along with projected 19.6% earnings growth to $3.18 per share in fiscal 2025 supports this bullish outlook.

The technical analysis shows strong momentum with RSI at 73.31 and MACD at 3.70, while Fibonacci projections indicate R3 resistance at $138.72, suggesting potential for further upside from current levels around $128.

The aerospace supplier's focus on lightweight metals engineering and manufacturing has solidified its position as a key supplier for aircraft engines and turbines. While commercial transportation may remain soft until Q2 2025, the company expects above-trend growth in commercial aerospace throughout 2025 due to healthy air traffic growth.

The S1 support level for HWM Stock is $113.81 ,The R1 resistant level for HWM Stock is $127.8.

As of the end of day on 2025-01-24, the price of HWM Stock was $127.05.

The target price for HWM Stock according to analyst rating is 129.53, with the highest price target at 144.00 and the lowest at 119.00. Analysts have a Strong Buy rating on HWM Stock overall.

The market cap of HWM is $51.6B.

Based on the provided data and context, here is my analysis of whether HWM is overvalued:

Valuation Analysis: HWM's current P/E ratio of 38.38 and EV/EBITDA of 24.09 in Q3 2024 are significantly higher than historical levels, suggesting rich valuation multiples.

Growth Metrics: The company has demonstrated strong earnings growth with Q3 2024 net income increasing 37% YoY to $331 million and improving net margins from 13.3% to 18.1%.

Analyst Consensus: Recent analyst actions remain predominantly bullish, with 17 out of 21 analysts maintaining "Strong Buy" ratings and a mean price target of $130, implying ~10% upside potential from current levels.

Industry Position: HWM's aerospace segment continues to benefit from robust air travel recovery and increased defense spending, providing sustainable growth drivers despite elevated valuations.

Conclusion: While traditional valuation metrics suggest HWM is expensive, the company's strong execution, margin expansion, and favorable industry tailwinds justify the premium valuation.

Howmet Aerospace Inc. is a provider of advanced engineered solutions for the aerospace and transportation industries. The Company’s segments include Engine Products, Fastening Systems, Engineered Structures and Forged Wheels. The Engine Products segment utilizes advanced designs and techniques to support engine programs and produces components for aircraft engines and industrial gas turbines. The Fastening Systems segment produces aerospace and industrial fastening systems, as well as commercial transportation fasteners and installation tools. The Engineered Structures segment produces titanium ingots and mill products for aerospace and defense applications and is vertically integrated to produce titanium forgings, extrusions, forming and machining services for airframe, wing, aero-engine, and landing gear components. The Forged Wheels segment manufactures forged aluminum wheels for trucks, buses, and trailers and related products for the global commercial transportation market.

Based on the provided data and market analysis, here is the price prediction for HWM stock by 2030:

Howmet Aerospace (HWM) stock is projected to reach $195-210 by 2030, driven by robust growth in commercial aerospace market and continued strong air travel demand. The company's strong market position in engineered aerospace solutions, combined with its impressive 129.2% stock surge over the past year and analysts' "Strong Buy" consensus, supports this bullish outlook. The expected softness in commercial transportation until Q2 2025 will be offset by above-trend growth in commercial aerospace throughout 2025 and beyond.

HWM has a total of 23200 employees.