15 Stocks That Outperform the S&P 500 Every Year For the Last 3 Years

5. Howmet Aerospace Inc. (NYSE:HWM)

3-Year Return as of the Close of March 12: 279%

Howmet Aerospace Inc. (NYSE:HWM) is a U.S.-based provider of innovative engineering solutions for the aerospace and transportation industries. With four reportable segments including jet engine components, aerospace fastening systems, forged wheels, and airframe structural components, the company seeks to provide solutions by offering differentiated products. Founded in 1888, the company is among the renowned employers of engineers, serving the aerospace and commercial transportation industries across the United States, Japan, France, Germany, China, and the globe.

The potential for the aerospace and transportation market is not something that’s hidden. On that note, the management is pretty optimistic about the industry it operates in, with the global aerospace market expected to grow at a CAGR of 7.2% between 2024 and 2033. This is supported by the management’s guidance, with a sales estimate of 8% and EBITDA growth of 11% in 2025 alone.

What has previously contributed to growth is its strong financial health, low debt, and focus on shareholder returns. A testament to Howmet Aerospace Inc. (NYSE:HWM)’s resilience is that despite headwinds from the challenges at Boeing, the company’s earnings grew. The company proved that strengthened margins are not always a consequence of improved sales, which actually dipped by 12% in line with weak Commercial Transportation in the last quarter of 2024, but rather a result of cost management, higher productivity, and headcount reductions. And maybe this is how it outperformed the broader market.

Howmet Aerospace Inc. (NYSE:HWM)’s future outlook is simple. With Boeing signaling that it has a straightforward path towards a production rate of 38 airplanes per month, up from 25 planes per month, we have a bull case for HWM. Not only this, Airbus and COMAC are expected to increase production in 2025.