Howmet Aerospace stock projected for strong growth

Howmet Aerospace is gaining attention in the aerospace and defense sectors. This company has been performing well, reaching all-time highs despite recent market volatility. Originally part of Alcoa, Howmet shifted focus from oil and gas to aerospace and defense after rebranding in 2020. Other defense companies, including Kratos Defense, Heico, and Boeing, have also shown resilience during market downturns. Factors such as reshoring manufacturing, advancements in AI, and a rebound in air travel are benefiting these companies. Howmet is particularly strong in commercial aerospace and industrial gas turbines. In June 2024, Howmet was added to a growth portfolio with a small investment. Since then, its stock has surged by around 75%. Plans are in place to increase investment once market conditions stabilize. Recent market patterns have shown positive signs, reinforcing confidence in future growth. Technical analysis indicates a strong upward trend for Howmet since October 2023, with significant earnings per share (EPS) growth. While growth is expected to slow in 2025, it is projected to rise again in 2026. Although Howmet's stock has a relatively high valuation, its expected earnings suggest the price may still be reasonable for future growth. The market's dynamics require careful management of portfolios to balance risk and opportunity, according to investment professionals.