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Has Howmet Aerospace (HWM) Outpaced Other Construction Stocks This Year?

Zacks Equity Research
·2 min read

The Construction group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Howmet (HWM) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Construction peers, we might be able to answer that question.

Howmet is one of 105 companies in the Construction group. The Construction group currently sits at #6 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Howmet is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for HWM's full-year earnings has moved 1.6% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

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Based on the latest available data, HWM has gained about 4.5% so far this year. Meanwhile, stocks in the Construction group have lost about 22.9% on average. As we can see, Howmet is performing better than its sector in the calendar year.

Landsea Homes Corporation (LSEA) is another Construction stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 10.7%.

In Landsea Homes Corporation's case, the consensus EPS estimate for the current year increased 11.7% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Breaking things down more, Howmet is a member of the Engineering - R and D Services industry, which includes 20 individual companies and currently sits at #162 in the Zacks Industry Rank. On average, stocks in this group have lost 8.7% this year, meaning that HWM is performing better in terms of year-to-date returns.

On the other hand, Landsea Homes Corporation belongs to the Building Products - Home Builders industry. This 20-stock industry is currently ranked #55. The industry has moved -30.9% year to date.

Going forward, investors interested in Construction stocks should continue to pay close attention to Howmet and Landsea Homes Corporation as they could maintain their solid performance.


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Howmet Aerospace Inc. (HWM) : Free Stock Analysis Report
 
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Zacks Investment Research