Howmet Aerospace: Robust Commercial Outlook And Strong Travel Demand

Aug. 17, 2024 10:31 AM ETHowmet Aerospace Inc. (HWM) StockHWM2 Comments
RL Insights
298 Followers
(14min)

Summary

  • The strong air travel demand from the previous quarter continues into the current quarter. With commercial aerospace accounting for 52% of total revenue, this is anticipated to bolster HWM's outlook.
  • Despite challenges with Boeing's production rate, HWM remains optimistic and has increased its expected build rate for Boeing's 737 aircraft.
  • For its most recent 2Q24, HWM delivered strong earnings results, with revenue growing 14% year-over-year, driven by the commercial aerospace market. Additionally, margins also expanded.
  • Given HWM's strong performance, I am reiterating my buy rating.

View of A380 aircraft jet engine and planes on runway

Monty Rakusen/DigitalVision via Getty Images

Synopsis

Howmet (NYSE:HWM) specialises in supplying advanced engineered solutions for the aerospace and transportation industries. For 2Q24, HWM delivered strong earnings results. Its revenue grew 14% year-over-year, driven mainly by the commercial aerospace market. For context, commercial aerospace accounts for

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RL Insights
298 Followers
With years of investing experience in the financial markets, I have honed my skills in identifying and capitalizing on investment opportunities across diverse sectors. My investment approach is based on fundamental analysis of stocks, focusing on companies with a strong competitive moat, consistent growth in free cash flow, and a track record of robust financial performance.My investment philosophy is rooted in long-term, fundamental investing. I steer clear of short-term trading tactics and options, believing instead in the power of long term investing to unlock value. This approach has served me well over the years, allowing me to navigate the complexities of the market with a balanced and informed perspective.As a contributor to Seeking Alpha, my aim is to explore a wide array of topics relevant to investors. From uncovering undervalued stocks poised for growth to identifying overvalued stocks that investors should be wary of, my articles aim to provide insightful, actionable advice.I am a university graduate that specialises in business and economics and it has provided me a solid foundation for my investment analysis as well as for my own investment. Currently working in a local brokerage firm.To me, writing for Seeking Alpha is more than just sharing investment ideas, it's about being part of a community that values deep, analytical insights into the market. It's an opportunity for me to contribute to the collective wisdom of investors and to continually refine my own strategies in the ever-evolving world of investing.

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