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HWMHowmet Aerospace Inc.Buy Wait5.9·$270.41+1.12%
Buy WaitModerate Confidence
Investment thesis

Howmet Aerospace has built a high-quality franchise with best-in-class margins and a flawless four-quarter earnings beat streak, but with the stock trading within 0.9% of its analyst consensus price target while carrying meaningful concentration in aerospace end markets and North American customers, the near-term reward relative to risk is minimal and patience before re-entry is warranted.

Thesis pillars

  • Best In Class Margins And ReturnsStable
  • Aerospace North America ConcentrationStable
  • Flawless Earnings Beat StreakStable
  • +1 more pillar — see the Why tab for full reasoning

Full reasoning →

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Howmet Aerospace Inc. (HWM) Stock Analysis

Range Bound setup · Temporary headwind edge

Buy WaitModerate Confidence

Industrials · Aerospace & Defense

Wait for pullback to $248.72. At $270.41 the A.R:R is 0.2:1 — below the 1.5:1 minimum for BUY_NOW. Engine's entry $248.72 (Support Atr Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: Concentration risk — Product: aerospace (70.0%); Concentration risk — Geographic: North America (72.0%).

Howmet Aerospace manufactures precision jet engine components, fastening systems, engineered structures, and forged aluminum wheels, with aerospace representing approximately 70% of 2025 revenue across four segments in 19 countries. North America generated 72% and Europe 22% of... Read more

$270.41+10.8% A.UpsideScore 5.9/10#12 of 64 Aerospace & Defense
QualityF-score8 / 9FCF yield1.10%
IncomeYield0.18%Payout10.67%sustainable
Entry $248.72(Support Atr Sticky)Stop $229.47Target $275.38(analyst − 10%)A.R:R 0.2:1
Analyst target$305.98+13.2%20 analysts
$275.38our TP
$270.41price
$305.98mean
$257
$340

Wait for pullback to $248.72. At $270.41 the A.R:R is 0.2:1 — below the 1.5:1 minimum for BUY_NOW. Engine's entry $248.72 (Support Atr Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: Concentration risk — Product: aerospace (70.0%); Concentration risk — Geographic: North America (72.0%). Chart setup: RSI 56 mid-range, Bollinger mid-band. Growth is cheap relative to earnings, but the technical setup has not yet produced a breakout above resistance (PEG 0.63, quality 7.8/10, growth 8.7/10). Score 5.9/10, moderate confidence.

Passes 6/8 gates (clean insider activity, no SEC red flags, news events none recent, earnings proximity 33d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: moderate.

news + 30-day 8-K events · 5-min refresh

Recent developments

updated 2026-07-06
TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Thu, Aug 6, 202633d to earnings· next earnings call

Thesis

Rewards
Strong earnings beat streak (4/4)
Positive news sentiment (+0.67)
High-quality business
Risks
Concentration risk — Product: aerospace (70.0%)
Concentration risk — Geographic: North America (72.0%)
Analyst target reached - limited upside remaining

Key Metrics

P/E (TTM)62.9
P/E (Fwd)44.9
Mkt Cap$108.2B
EV/EBITDA43.2
Profit Mgn20.2%
ROE33.8%
Rev Growth19.1%
Beta1.19
Dividend0.18%
Rating analysts28

Quality Signals

Piotroski F8/9MoatNarrow

Options Flow

P/C2.60bearish
IV47%normal

Concentration Risks(10-K Item 1A)

  • HIGHProductaerospace70%
    10-K Item 1: 'Howmet's largest market is aerospace, which represented approximately 70% of the Company's revenue in 2025'
  • HIGHGeographicNorth America72%
    10-K Item 1: 'North America and Europe generated 72% and 22%, respectively, of Howmet's sales in 2025'
  • LOWCustomerRTX Corporation11%
    10-K Item 1: 'RTX Corporation and GE Aerospace each represented approximately 11% of the Company's third-party sales'
  • LOWCustomerGE Aerospace11%
    10-K Item 1: 'RTX Corporation and GE Aerospace each represented approximately 11% of the Company's third-party sales'
  • HIGHSuppliertitanium sponge
    10-K Item 1A: 'we depend on a number of limited source or sole source suppliers, such as for titanium sponge and specialized metal alloys'

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.

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Methodology · Editorial policy & full disclaimer

Rating Breakdown

2 floor-breakers·1 ceiling hit

Momentum below the gate floor. Component breakdown shows what dragged the score down.static

Macd
0.0
Volume
0.8
Obv
1.0
Rsi
5.5
Ma Position
9.0
Volume distribution (falling OBV)Above 200-day MA

Priced at a premium — multiples above sector norms. Needs delivery on growth + margins to justify.static

Ev Ebitda
0.0
Ps
1.7
Pe
1.9
Forward Pe
2.6
Analyst Target
5.0
Peg Ratio
9.2
Forward P/E: 44.9xPEG: 0.63
GatesMomentum 3.3<4.5A.R:R 0.2 < 1.5@spotInsider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 33d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARRange BoundSuitability: Moderate
RSI
56 · Neutral
20D MA 50D MA 200D MAGOLDEN CROSSSupport $243.68Resistance $290.63

Price Targets

$229
$249
$275
A.Upside+1.8%
A.R:R0.2:1

Position Sizing

ConvictionHigh conviction
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Target reached (1.8% upside)
! News modifier capped: WAIT cannot upgrade to NOW via sentiment alone
! momentum at 3.3 (below the engine's 4.5 threshold)

Earnings

B
B
B
B
4/4 beats
Next Earnings2026-08-06 (33d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is HWM stock a buy right now?

Wait for pullback to $248.72. At $270.41 the A.R:R is 0.2:1 — below the 1.5:1 minimum for BUY_NOW. Engine's entry $248.72 (Support Atr Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: Concentration risk — Product: aerospace (70.0%); Concentration risk — Geographic: North America (72.0%). Chart setup: RSI 56 mid-range, Bollinger mid-band. Growth is cheap relative to earnings, but the technical setup has not yet produced a breakout above resistance (PEG 0.63, quality 7.8/10, growth 8.7/10). Target $275.38 (+1.8%), stop $229.47 (−17.8%), A.R:R 0.2:1. Score 5.9/10, moderate confidence.

What is the HWM stock price target?

Take-profit target: $275.38 (+10.8% upside). Target $275.38 (+1.8%), stop $229.47 (−17.8%), A.R:R 0.2:1. Stop-loss: $229.47.

What are the risks of investing in HWM?

Concentration risk — Product: aerospace (70.0%); Concentration risk — Geographic: North America (72.0%); Analyst target reached - limited upside remaining.

Is HWM overvalued or undervalued?

Howmet Aerospace Inc. trades at a P/E of 62.9 (forward 44.9). TrendMatrix value score: 3.8/10. Verdict: Buy (Wait for Entry).

What do analysts say about HWM?

28 analysts cover HWM with a consensus score of 4.1/5. Average price target: $306.

What does Howmet Aerospace Inc. do?Howmet Aerospace manufactures precision jet engine components, fastening systems, engineered structures, and forged...

Howmet Aerospace manufactures precision jet engine components, fastening systems, engineered structures, and forged aluminum wheels, with aerospace representing approximately 70% of 2025 revenue across four segments in 19 countries. North America generated 72% and Europe 22% of 2025 sales; RTX Corporation and GE Aerospace each represented approximately 11% of third-party sales in 2025.

Related stocks: HEI-A (Heico Corporation) · HEI (Heico Corporation) · EMBJ (Embraer S.A.) · FTAI (FTAI Aviation Ltd.) · NOC (Northrop Grumman Corporation)
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