We recently published a list of Why These 15 Aerospace Stocks Are Surging In 2025. In this article, we are going to take a look at where Howmet Aerospace Inc (NYSE:HWM) stands against other aerospace stocks that are surging in 2025.
The aerospace industry is riding a wave of growth as global conflicts across the world have sparked a surge in demand. This has led to swelling backlogs and a flood of orders from every corner of the globe. Meanwhile, recent administration changes in the United States have shaken things up. European countries are ramping up their aerospace orders and are eager to secure advanced technology.
Some nations have hesitated over U.S. orders amid shifting policies, but cancellations seem unlikely since trade wars have simmered down a bit. Beyond geopolitics, the industry is buzzing with other trends. The commercial aviation sector is roaring back with record passenger traffic. This has pushed airlines to modernize fleets with fuel-efficient aircraft.
Moreover, AI software is making defense aircraft more potent, and the entire industry has seen a bump in growth.
Methodology
For this article, I screened the best-performing aerospace stocks year-to-date.
I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? 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 373.4% since May 2014, beating its benchmark by 218 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)
Number of Hedge Fund Holders In Q4 2024: 58
Howmet Aerospace Inc (NYSE:HWM) makes aerospace components for engines, fastening systems, and titanium structural parts. It also makes forged aluminum wheels.
The stock is up significantly so far in 2025 as Howmet reported record revenue of $1.9 billion for Q4 2024, up 9% year-over-year. This was mostly driven by a 13% growth in commercial aerospace.
Adjusted EPS rose 40% to $0.74, while adjusted EBITDA increased by 27% to $507 million with a margin of 26.8%.
Moreover, Howmet raised its quarterly dividend by 25% to $0.10 per share and repurchased $50 million in stock in January 2025. This announcement led to an over 8% increase in the stock price in the following days.
Revenue grew by 12% year-over-year to $7.4 billion, with commercial aerospace up 20%. Net income surged 51% to $1.2 billion, and adjusted EPS rose by 46% to $2.69. It also raised its guidance for 2025.
The consensus price target of $123.28 implies 10.43% downside.
HWM stock is up 26.02% year-to-date.
Overall, HWM ranks 9th on our list of aerospace stocks that are surging in 2025. While we acknowledge the potential of HWM as an investment, our conviction lies in the belief that some 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.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
