We lately printed a listing of 10 Protection Shares with the Highest EPS Progress in 5 Years. On this article, we’ll check out the place Howmet Aerospace Inc. (NYSE:HWM) stands in opposition to different shares with the best EPS development throughout this era.
The world has been embroiled in lethal political and armed battle over the previous few years. Russia’s conflict on Ukraine has gone past three years, whereas the Center East is up in flames after Israel launched a full-scale invasion of Gaza in opposition to Hamas. In line with a report, the variety of battle zones worldwide has elevated by practically two-thirds since 2021.
READ ALSO: 10 Finest Performing Protection Shares So Far in 2025 and 10 Worst Performing Protection Shares So Far in 2025.
Whereas the human influence of those wars has been tragic, the protection trade has profited by luring traders into shopping for up shares. A number of of the world’s prime contractors noticed their shares guide all-time highs final 12 months.
A latest report by the Worldwide Institute for Strategic Research (IISS) acknowledged that international protection spending soared to a report excessive of $2.46 trillion in 2024, amid vital price range will increase in Asia, Europe, the Center East, and North Africa resulting from deteriorating safety environments and risk perceptions. Easing inflation in several components of the world additionally allowed international locations to put money into and bolster nationwide protection.
World protection shares have surged this 12 months as European capitals unlock billions to supercharge their militaries. A number of contractors within the area are registering double-digit returns. Asian protection producers, particularly in South Korea and India, have additionally benefited from the splurge.
In distinction, American protection shares have been subdued this 12 months and missed the worldwide rally resulting from issues round authorities price range cuts and diminished army spending sooner or later if issues calm down with Russia and China. The creation of DOGE has additionally reshaped traders’ views of the trade.
Regardless of a shaky begin to 2025, most analysts stay optimistic concerning the sector, with the draw back shrinking. They consider that whereas the world could also be heading towards a multi-polar order, it’s no much less harmful to lower the necessity for deterrence instruments.
Investor sentiment has obtained a lift from two latest occasions. In March, President Trump unveiled a brand new next-generation fighter jet, the F-47, to exchange the F-22 Raptor. Given the strategic competitors with China, he has additionally introduced to resurrect America’s army and industrial shipbuilding trade, which he sees as important to nationwide safety.
With that mentioned, let’s now shift give attention to the protection shares with the best EPS development in 5 years.
Is Howmet Aerospace Inc. (HWM) Amongst Protection Shares with the Highest EPS Progress in 5 Years?
Engineers analyzing stress exams of an plane engine, working to verify its prepared for flight.
For this text, we went via screeners to determine shares within the aerospace and protection trade which have had constructive EPS development over the past 5 years. From there, we picked the highest 10 protection shares with the best EPS development throughout this era. Pure-play aerospace firms that don’t deal in protection contracts should not a part of the checklist. All knowledge is as of the shut of enterprise on Thursday, April 3, 2025.
Why are we within the shares that hedge funds pile into? The reason being easy: our analysis has proven that we are able to outperform the market by imitating the highest inventory picks of the most effective hedge funds. Our quarterly publication’s technique selects 14 small-cap and large-cap shares each quarter and has returned 373.4% since Could 2014, beating its benchmark by 218 proportion factors (see extra particulars right here).
EPS Progress, Previous 5 Years: 22.24%
Howmet Aerospace Inc. (NYSE:HWM) manufactures elements for plane engines, fasteners, aluminum wheels for vehicles, and titanium buildings for aerospace and protection functions.
It is without doubt one of the greatest protection shares to purchase, with an EPS development of over 22% within the final 5 years. Howmet Aerospace Inc. (NYSE:HWM)’s spectacular monetary efficiency continues to make it an interesting inventory for traders. On February 13, the corporate reported a 9.1% year-over-year improve in This autumn income to $1.9 billion. Internet revenue grew 33% from final 12 months to $314 million, pushed by strong development within the industrial aerospace enterprise.
Howmet Aerospace Inc. (NYSE:HWM)’s full-year 2024 income stood at $7.4 billion, up 12% from final 12 months. Internet revenue surged 57% to $1.2 billion. The working revenue margin stood at 22%. GAAP EPS for the 12 months was recorded at $2.81, in comparison with $1.83 per share within the prior 12 months.
Hardman Johnston World Fairness Technique acknowledged the next concerning Howmet Aerospace Inc. (NYSE:HWM) in its This autumn 2024 investor letter:
“From a sector standpoint, the principle drivers of the portfolio’s outperformance through the fourth quarter have been Industrials and Supplies. Inside Industrials, Howmet Aerospace Inc. (NYSE:HWM) and Vertiv Holdings Co. have been the most important contributors to outperformance. Howmet reported an earnings beat through the quarter with broad-based energy spanning throughout all key segments. Specifically, the corporate’s Engine Merchandise and Fasteners phase carried out effectively. Through the earnings name, administration spent vital time describing the rising new development driver of commercial fuel generators, that are utilized in fuel energy crops, which have change into a spotlight for traders resulting from accelerating demand from AI knowledge facilities. Howmet is the main provider to the three main producers of those engines and can profit from each preliminary functions and the long-term upkeep demand.”
Wall Road analysts are bullish on Howmet Aerospace Inc. (NYSE:HWM), with a consensus Purchase score and a median share value upside potential of 10%. In line with Insider Monkey’s database, 58 hedge funds held a stake within the firm on the finish of This autumn 2024, enhancing from 45 on the finish of the third quarter.
Total, HWM ranks seventh among the many 10 Protection Shares with the Highest EPS Progress in 5 Years. Whereas we acknowledge the potential of protection firms, our conviction lies within the perception that AI shares maintain larger promise for delivering increased returns, and doing so inside a shorter timeframe. There’s an AI inventory that went up for the reason that starting of 2025, whereas widespread AI shares misplaced round 25%. If you’re searching for an AI inventory that’s extra promising than HWM however that trades at lower than 5 occasions its earnings, take a look at our report about this least expensive AI inventory.
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Disclosure: None. This text is initially printed at Insider Monkey.
