Billionaire Paul Singer’s Top 12 Long-Term Stock Picks

10. Howmet Aerospace Inc. (NYSE:HWM)

Elliott Management’s Stake Value: $10.03 Million

Elliott Management First Major Purchase: 2020

Number of Hedge Fund Holders: 45

Howmet Aerospace Inc. (NYSE:HWM) provides advanced engineered solutions for aerospace and transportation industries, including airfoils and seamless rolled rings. It is one of billionaire Paul Singer’s top long-term stock picks, with a 110% year-to-date gain.

Howmet Aerospace Inc. (NYSE:HWM) has shown strong financial results, highlighting its solid growth. With adjusted earnings of $0.71 per share and revenue up 11% year over year to $1.84 billion, the company’s third-quarter earnings came above market forecasts. The company’s commercial aerospace division, which witnessed a 17% growth in revenue from the same period last year, provided a major boost.

Howmet Aerospace Inc.’s (NYSE:HWM) future growth is anticipated to be greatly aided by strategic partnerships with major industry players like GE Vernova, Siemens, Mitsubishi Heavy, and Ansaldo, as well as its leadership in the delivery of industrial gas turbine blades. Howmet Aerospace Inc. (NYSE:HWM) also remains well positioned to maintain double-digit growth in the Commercial Aerospace segment beyond 2025, owing to strong demand for spare parts in the aerospace space. With the substantial demand for more engine spare parts, the recent underproduction of aircraft has led to a huge order backlog supporting future revenue growth.

Fidelity Growth Strategies Fund stated the following regarding Howmet Aerospace Inc. (NYSE:HWM) in its Q3 2024 investor letter:

“Lastly, an overweight in jet engine components maker Howmet Aerospace Inc. (NYSE:HWM) (+29%) contributed as well. In July, management announced that Q2 financial results exceeded expectations, with earnings surging by 52% due to robust demand for travel and an aging global aircraft fleet, which resulted in substantial backlogs for aircraft manufacturers. Consequently, management raised 2024 earnings and revenue guidance, hiked the company’s quarterly dividend by 60%, and increased its share-buyback program.”