HOWMET AEROSPACE INC (NYSE:HWM) – A Strong Growth Stock with Technical Breakout Potential

HOWMET AEROSPACE INC (NYSE:HWM) was identified by our screener as a strong growth stock with a favorable technical setup. The company combines solid fundamentals with a bullish price pattern, making it worth a closer look.

Strong Growth Fundamentals

HOWMET AEROSPACE scores well on key growth and profitability metrics:

• Growth Rating (7/10): The company has shown strong recent earnings growth, with EPS up 49% over the past year. Analysts expect further growth, with EPS projected to increase by nearly 23% annually.
• Profitability Rating (9/10): Margins are robust, with an operating margin of 23.5%, outperforming 98% of its aerospace & defense peers. Return on equity stands at 26.2%, another industry-leading figure.
• Financial Health (7/10): The balance sheet is solid, with manageable debt levels and a healthy current ratio of 2.3.

While the stock trades at a premium valuation (P/E of 55.4), this is in line with industry averages and justified by its high growth trajectory.

Bullish Technical Setup

The technical analysis highlights several positive signals:

• Trend Strength: Both short-term and long-term trends are positive, with the stock trading near 52-week highs.
• Relative Strength: HWM outperforms 96% of all stocks and 88% of its industry peers over the past year.
• Bull Flag Pattern: The stock is consolidating after a strong upward move, suggesting potential for another leg higher.
• Support Levels: Key support sits around $165, providing a clear risk level for traders.

The combination of strong fundamentals and a constructive chart pattern makes HWM a candidate for further upside.

For a deeper dive, review the full fundamental analysis and technical report.

Our Strong Growth Stocks with Good Technical Setup screener lists more stocks meeting these criteria.

Disclaimer

This is not investing advice. Always conduct your own research before making investment decisions.