• Howmet Aerospace (HWM) is trading above all daily moving averages and has gained 14.55% since April 29.
• The stock has a 100% technical “Buy” signal and a Weighted Alpha of +101.82.
• HWM shares have gained 93.2% over the past year.
• Wall Street analysts are moderately bullish with an average price target of $154.04.

Today’s Featured Stock:

Valued at $63.6 billion, Howmet Aerospace (HWM) engages in providing engineered solutions for customers in the transportation, gas turbine, and aerospace (both defense and commercial) industries worldwide.  

What I’m Watching:

I found today’s Chart of the Day by using Barchart’s powerful screening functions. I sorted for stocks with the highest technical buy signals, superior current momentum in both strength and direction, and a Trend Seeker “buy” signal. I then used Barchart’s Flipchart feature to review the charts for consistent price appreciation. HWM checks those boxes. 

Since the Trend Seeker signaled a “Buy” on April 29, the stock has gained 14.55%.

On the chart, you can note that the stock is trading above all of its daily moving averages and has rising prices on steady volume.

HWM Price vs. Daily Moving Averages:

Barchart Technical Indicators for Howmet:

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

When a stock is trading above all of its daily moving averages and closed within 0.91% of its 52-week high, it won’t take much to hit another new high.

• Howmet has a 100% technical “Buy” signal.
• The stock closed at $157.50 on May 8, within 0.91% of its 52-week high of $159.04.
• HWM has a Weighted Alpha of +101.82.
• The stock has gained 93.2% over the past year.
• Trend Seeker “Buy” signal intact.
• HWM is trading above its 20, 50 and 100-day moving averages.
• The stock has made 12 new highs and is up 23.7% in the last month.
• The 14-day Relative Strength Index is at 75.26%.
• The technical support level is at $155.14.

Follow the Fundamentals:

• $63.6 billion market cap.
• 52.72x trailing price-earnings ratio.
• 0.25% dividend yield.
• Revenue is expected to grow 8.78% this year and another 10.45% next year.
• Earnings are estimated to increase 7.99% this year and an additional 13.82% next year.

Analyst and Investor Sentiment on Howmet:

I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping a stock, it’s hard to make money swimming against the tide.

It looks like not only Wall Street analysts, but also many of the popular investing advisory services, are moderately bullish on this stock.

• Wall Street analysts tracked by Barchart issued 16 “Strong Buy,” one “Moderate Buy” and four “Hold” opinions on the stock with a price target of $154.04.
• Value Line gives the stock its highest rating and comments: “The equity is ranked to outpace the broader-market averages in the year ahead. However, total return potential to late decade is muted and the dividend yield is underwhelming.”
• CFRA’s MarketScope gives the stock a “Hold” rating with a price target of $163.
• MorningStar thinks the stock is 11% overvalued.
• Of the 28 individual investors following the stock on Motley Fool, all 28 think the stock will beat the market .
• 101,880 investors monitor the stock on Seeking Alpha, which rates the stock a “Hold.”

The Bottom Line:

Currently Howmet Aerospace has momentum and support by both the market and individual investors, but it faces competition from rivals Precision Castparts part of Berkshire Hathaway (BRK.B), Allegheny Technologies (ATI), and French company Lisa Aerospace.

Additional disclosure: The Barchart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis.