Howmet Aerospace Climbs 52.6% in a Year: What's Next for Investors?

Howmet Aerospace Inc.’s HWM shares have surged 52.6% in the past year, outpacing the industry and the S&P 500, which have returned 7.1% and 24.6%, respectively. The company has also outshone its peers like Textron Inc. TXT and RTX Corporation RTX, which have returned 13.3% and 31.6%, respectively…

Howmet Aerospace Inc.’s HWM shares have surged 52.6% in the past year, outpacing the industry and the S&P 500, which have returned 7.1% and 24.6%, respectively. The company has also outshone its peers like Textron Inc. TXT and RTX Corporation RTX, which have returned 13.3% and 31.6%, respectively, over the same time frame.

HWM Outperforms the Industry, S&P 500 & Peers

Closing at $268.86 in the last trading session, the stock is trading close to its 52-week high of $290.63 and significantly higher than its 52-week low of $169.45. It is trading above both its 50-day and 200-day moving averages, indicating solid upward momentum and confidence in the company's long-term prospects.

HWM Stock’s 50-Day & 200-Day Moving Averages

Let’s take a look at HWM’s fundamentals to better analyze how to play the stock.

Factors Driving HWM’s Performance

The strongest driver of Howmet Aerospace’s business at the moment is the persistent strength in its commercial aerospace market. In the first quarter of 2026, the company’s revenues from the commercial aerospace market increased 20% year over year (exceeding $1.2 billion), which accounted for 53% of its quarterly sales. Strong air travel activities have been positive for the company, as the increased usage of aircraft has driven spending on parts and products that it provides.

This uptick significantly benefited Howmet’s Engine Products segment, which reported a 29% year-over-year revenue increase in the first quarter. The sustained strength was attributed to solid momentum in the commercial aerospace, defense aerospace and gas turbine markets. Driven by strength across the commercial and defense aerospace markets, revenues from the Fastening Systems segment also increased 14% year over year.

Also, Boeing is witnessing a gradual production increase, particularly in the 737 MAX widebody aircraft, which is boosting demand for Howmet Aerospace’s products in the market. Healthy build rates at Airbus for A320 (narrowbody) and A350 (widebody) aircraft also hold promise for HWM’s engine spares demand.

Strong momentum in its defense aerospace market is also a positive for the company. Revenues from the defense aerospace market increased 10% year over year in first-quarter 2026. The surge in revenues was driven by the solid demand for engine spares, particularly related to the F-35 program, and an increase in orders for legacy fighter jet spares.

It's worth noting that the fiscal year 2026 Defense Appropriations Act was signed into law in February 2026, providing a strong budgetary allocation for defense. Such robust provisions set the stage for Howmet Aerospace, which remains focused on its defense business.

HWM’s measures to reward shareholders are encouraging. In the first three months of 2026, the company paid dividends of $48 million and repurchased shares worth $300 million. In August 2025, the company hiked its dividend by 20% to 12 cents per share (annually: 48 cents), marking its second dividend hike in 2025. Also, in July 2024, its board approved an increase in the share repurchase program by $2 billion to $2.487 billion of its common stock.

Howmet Aerospace is a key player in the aerospace and defense markets, alongside companies such as Textron and RTX Corp.

HWM’s Estimate Revisions

The Zacks Consensus Estimate for HWM’s bottom line for 2026 has increased 7.7% in the past 60 days.

Valuation

Howmet Aerospace is trading at a forward 12-month price-to-earnings (P/E) ratio of 49.06X, much higher than the industry average of 33.28X. This elevated valuation could make the stock vulnerable to further pullbacks if market sentiment sours.

In comparison with HWM’s valuation, its peers, Textron and RTX Corp., are trading cheaper. TXT and RTX are currently trading at 13.17X and 26.27X, respectively.

Conclusion

Strength across both the commercial and defense aerospace markets, driven by solid aircraft build rates, strong engine spares demand and elevated defense spending, positions Howmet Aerospace well for sustained growth in the coming quarters. Supported by a healthy liquidity position, the company’s shareholder-friendly initiatives further enhance its investment appeal.

Despite its premium valuation, favorable analyst sentiment and strong growth prospects suggest that investors may consider this Zacks Rank #2 (Buy) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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