Howmet Aerospace is Friday's IBD Stock Of The Day, with the S&P 500 defense play trading slightly below an early entry in stock market action after reclaiming a key level last week.
Pittsburgh-based Howmet supplies aircraft parts, including engine turbine blades, for both new commercial jets and those already in service, as well as for military aircraft such as the F-35. The company's clients include manufacturing giants like GE Aerospace, Boeing, Airbus and Lockheed Martin.
Howmet Aerospace reported better-than-expected second-quarter earnings and revenue on July 31.
However, third-quarter profit guidance came in around 89 cents to 91 cents per share, in line with analyst projections. The S&P 500 stock fell 6.4% on the report before bottoming at 169.45 on Aug. 20. Howmet has moved 9% higher since then.
Bank of America analysts on Aug. 4 raised the Howmet Aerospace price target to 215 from 185, maintaining a buy rating on the shares. The firm noted that Howmet's Q2 results left investors feeling "uncertain."
The company is expected to report third-quarter earnings and revenue at the end of October. FactSet consensus forecasts quarterly profit growing 28% with sales increasing 11%.
The S&P 500 stock has an average 205.39 analyst price target with an overweight rating, according to FactSet.
Investors can also keep tabs on the Leaderboard, the IBD 50 list of top growth stocks and IBD SwingTrader along with the IBD Sector Leaders list.
S&P 500: Howmet Stock Performance
Howmet stock advanced as high as 192.99 during regular trade in Friday's stock market, before falling around 1.8%. The S&P 500 stock is in a shallow base with a traditional buy point of 193.26, according to MarketSurge charts. However, aggressive investors could use a move above Thursday's high of 192.25 as an early entry.
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The aerospace play booked consecutive monthly declines in July and August but is trending toward a gain in September. So far this month, Howmet Aerospace is up nearly 8%. Last week, Howmet Aerospace climbed 4.25%, reclaiming its 50-day moving average.
Tensions in the Middle East and elsewhere, as well as the restructuring of Europe's defense programs, continue to drive demand for defense stocks. The 74 stocks in the IBD-tracked Aerospace/Defense industry group have collectively advanced more than 27% in the 2025 stock market.
HWM has advanced more than 74% in this year's stock market, placing it in the top 10 best performing S&P 500 stocks.
The S&P 500 stock has a robust 97 Composite Rating out of a best-possible 99. Howmet stock also has a strong 91 Relative Strength Rating and a 98 EPS Rating.
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