We recently published a list of 10 S&P 500 Stocks That Outperformed Bitcoin in 2024. In this article, we are going to take a look at where Howmet Aerospace Inc. (NYSE:HWM) stands against other S&P 500 stocks that outperformed bitcoin in 2024.
Bitcoin’s price has fluctuated dramatically since U.S. President Donald Trump’s inauguration, with the cryptocurrency staying around $100,000 since achieving the milestone in December. Trump’s ascension as the president has fueled more Bitcoin optimism, with many expecting a more favorable regulatory environment for digital assets. After the SEC approved the first U.S. spot Bitcoin ETF last year, Bitcoin surpassed the $70,000 price milestone set for 2021. The acceptance was largely regarded as a watershed event for the cryptocurrency, increasing its attractiveness to more mainstream investors. This year, Bitcoin’s price has more than doubled. The token is widely projected to see even stronger price movement in 2025, with numerous industry analysts estimating a doubling in value to $200,000.
In an interview with CNBC, James Butterfill, head of research for crypto-focused asset management CoinShares, stated that Bitcoin values in 2025 might range between $80,000 and $150,000. Butterfill stated that in the long run, it would not be “unreasonable” to anticipate Bitcoin to be worth around 25% of gold’s market share, up from roughly 10% presently. Should Butterfill’s $80,000 call be met, it will be due to President Trump’s failure to implement his promised pro-crypto measures.
Hedge Fund Managers’ Stance on Bitcoin
Of course, a few hedge fund managers have joined to claim a piece of the Bitcoin pie as well. ARK Invest’s Cathie Wood, for example, remains unwavering in her prediction that Bitcoin will reach $1.5 million by 2030. Known for her ambitious tech projections, the financial expert outlined the scenario at Ark’s Big Ideas 2025 conference, revealing that the chances of attaining this massive sum had actually grown. The investor has proposed three options: a middle-ground of $710,000, a cautious estimate of $300,000, and the bull scenario of $1.5 million.
Given all of this, is Bitcoin a worthwhile investment? Even the most popular cryptocurrencies, such as Bitcoin, have fluctuated in value, the market isn’t as transparent as it is for stocks, transactions are irreversible, and consumer safeguards are low or nonexistent. According to Charles Schwab, as long as Bitcoin is extremely volatile and susceptible to large transaction fees, it appears that it will have little utility as a means of trade or a store of wealth. With that in mind, it is understandable that equities tend to be less volatile than cryptocurrencies, including Bitcoin.
Our Methodology
For this list, we focused on stocks in the S&P 500 with a price performance greater than that of BTC (92.73%) as of February 17. These stocks are ranked in ascending order according to their 1-year price performance. In addition, we mentioned hedge fund sentiment around each stock to provide further insight into their market standing.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Engineers examining stress tests of an aircraft engine, working to make sure its ready for flight.
Howmet Aerospace Inc. (NYSE:HWM)
1-Year Price Performance: 111.41%
Number of Hedge Fund Holders: 45
Howmet Aerospace Inc. (NYSE:HWM) is an American aerospace company that develops critical solutions for the aerospace, defense, and transportation sectors. Its diversified range includes engine components, fastening systems, engineering structures, and forged wheels, which play an important role in military applications.
On February 14, BofA reaffirmed its Buy rating on Howmet Aerospace, with a price objective of $135. The firm assigned its rating based on a number of factors influencing Howmet Aerospace’s financial performance and market outlook, including the company exceeding expectations with an adjusted EPS of $0.74, owing primarily to strong operating profits in key segments such as Fastening Systems and Engineered Structures. Furthermore, the company anticipates sustained growth in the aftermarket and engine spares markets, as well as a cautious increase in production rates. Moreover, Howmet’s decision to raise its dividend by 25%, from $0.08 to $0.10 per share, shows confidence in its future cash flow generation.
Delaware Ivy Core Equity Fund stated the following regarding Howmet Aerospace Inc. (NYSE:HWM) in its Q3 2024 investor letter:
“Howmet Aerospace Inc. (NYSE:HWM) – Though recovery in large airplane manufacturing is uneven due to supply constraints (affecting both Boeing and Airbus), this manufacturer of airframe and jet-engine components was a prime beneficiary of higher production rates across the industry in addition to higher content per engine. Second-quarter earnings surprised materially to the upside.”
Overall, HWM ranks 7th on our list of S&P 500 stocks that outperformed bitcoin in 2024. While we acknowledge the potential of HWM as an investment, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than HWM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
