Howmet Aerospace Inc (NYSE:HWM) Shows Strong Growth and Technical Breakout

A combined technical and fundamental method for stock selection gives investors a complete system for finding promising opportunities. This method focuses on companies showing good basic business qualities while also displaying positive technical chart formations. By looking for stocks with solid growth features, good earnings, and sound financial numbers next to developing technical breakouts, investors may find stocks ready for continued upward movement. This two-part method helps find companies with both the basic quality to maintain growth and the technical push to indicate the market sees their possibility.

Technical Breakout Pattern

HOWMET AEROSPACE INC (NYSE:HWM) shows a positive technical view that fits the screening method's needs. The stock is now trading near its 52-week high of $205.29, showing good push across several time frames. Both short-term and long-term trends are still positive, with the stock doing better than 92% of all other stocks over the last year. The technical setup shows less movement during recent sideways action, which often comes before notable price changes. A recent Pocket Pivot signal, identified by upward price action on higher volume than the highest down volume seen in the prior ten days, gives more proof of buying interest. The stock holds a place above all main moving averages, including the 20-day SMA at $193.47 and the 200-day SMA at $160.49, showing continued positive push across different time periods. Several support levels are present below the current price, giving possible protection from declines, while little resistance above indicates space for continued gains.

Growth Fundamentals

The basic growth qualities of Howmet Aerospace fit well with the screening criteria's focus on good growth companies. The company shows notable growth numbers that support its place in a growth-focused plan:

• Earnings Per Share increased by 44.39% over the last year
• Revenue rose by 8.85% in the most recent year
• Expected EPS growth of 20.95% each year moving forward
• Projected Revenue growth of 9.94% per year in future times

It is important that both EPS and Revenue growth rates are speeding up, with future estimates higher than past results. This growth path is especially notable within the Aerospace & Defense industry, where Howmet does better than 75% of its 70 industry competitors. The company's growth story remains solid, with experts predicting continued expansion driven by need for its jet engine parts, aerospace fastening systems, and airframe structural parts.

Profitability and Financial Health

Howmet Aerospace shows very good earnings numbers that match its growth profile, getting a Profitability Rating of 9 out of 10. The company's ability to turn revenue into profits is particularly good:

• Return on Invested Capital of 16.08% is better than 98.57% of industry competitors
• Profit Margin of 18.07% is in the top group of the industry
• Operating Margin of 24.30% shows good operational effectiveness
• All main margins have improved in recent times

Financial health remains sound with a rating of 7 out of 10, showing few liquidity or debt worries. The company keeps a good Current Ratio of 2.31 and has lowered both its debt-to-assets ratio and number of shares in recent years. This pairing of good earnings and financial steadiness gives the base needed to maintain growth plans without too much financial danger.

Valuation Considerations

While growth and push qualities seem good, valuation gives a more detailed view. The stock trades at a P/E ratio of 63.19, which seems high next to the S&P 500 average of 26.76. However, several points help explain this valuation:

• The P/E ratio is similar to industry competitors in the Aerospace & Defense sector
• Forward P/E of 46.46 shows expected earnings growth
• PEG ratio indicates the valuation could be fair when considering growth
• Very good earnings numbers may support higher multiples

The valuation view shows why mixing basic study with technical timing can be especially useful, investors can find companies with good growth paths while using technical study to possibly enter during positive push conditions.

Industry Position and Outlook

Howmet Aerospace works in a positive industry setting, supplying important parts to the aerospace sector during a time of rising global air travel need. The company's focus on lightweight metal products places it well for industry movements toward fuel savings and performance improvements. Its varied product range across engine parts, fastening systems, and engineered structures gives several growth paths while lowering reliance on any single product type. The company's Pittsburgh headquarters and nearly 24,000 workers support a large operational size that can use industry growth chances.

The pairing of Howmet's technical breakout formation with its basic growth story creates a positive case for more study. Investors looking for similar chances can review other choices through our Strong Growth Stocks with Good Technical Setup Ratings screen, which systematically finds companies showing both basic quality and technical push.

For those doing more research, detailed study is available through the Technical Analysis Report and Fundamental Analysis Report.

Disclaimer: This study is for information only and does not make up investment guidance, suggestion, or support of any security. Investors should do their own research and think about their personal money situation before making investment choices. Past results are not a sign of future outcomes.