Monty Rakusen
When you’re boarding a Boeing (BA) or an Airbus jet, have you ever thought about the components and materials that keep the plane together at 35,000 feet? Probably not. But guess what? Howmet Aerospace (
Howmet Aerospace Could Surge Even Higher: Here's Why I'm Buying
Summary
- Howmet Aerospace Inc. is a critical, near-monopoly supplier of essential aircraft components, benefiting from high barriers to entry and surging demand from Boeing and Airbus.
- HWM financials are robust: Q1 '25 revenues up 6.5%, net income up 41.5%, and significant margin expansion across all business segments signal strong operational execution.
- Aggressive share buybacks, a doubled dividend, and powerful cash flow generation directly reward shareholders and reflect management’s confidence in future growth.
- Despite a high P/E, I rate HWM stock a Strong Buy due to its dominant market position, impressive growth, and long-term industry tailwinds outweighing short-term supply chain risks.
Rick is a Wall Street Journal best-selling author with over 20 years of experience trading stocks and options. The most authoritative publications, including Good Morning America, Washington Post, Yahoo Finance, MSN, Business Insider, NBC, FOX, CBS, and ABC News, cover his work. His passion is business, and he works tirelessly to deliver content in an easy-to-understand manner. In 2018, Rick wrote The Financially Independent Millennial to inspire his readers with his story about becoming financially independent at age 35 despite not learning about money when he was younger. His books are easy to read and often refer to key points that “He would tell his younger self.” When not thinking about business, Rick writes (mainly about cruise ship travel) for his travel blog and is an enthusiast of fast cars, technology, & cooking.
Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in HWM over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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