How to Find Strong Buy Aerospace Stocks Using the Zacks Rank

Zacks Investment Research highlights the Zacks Rank, a proprietary stock-rating model based on earnings estimate revisions, noting that a portfolio of Zacks Rank #1 (Strong Buy) stocks has historically outperformed the market. Howmet Aerospace Inc. (HWM) was recently added to the Zacks Rank #1 list due to positive earnings estimate revisions, a consensus estimate increase of $0.20 to $3.46 per share for fiscal 2025, and a recent 14.9% gain exceeding the S&P 500's 6.4% increase over four weeks, suggesting it as a potentially promising investment.

Analysis

The Zacks Rank, a proprietary stock-rating model emphasizing earnings estimate revisions, has historically demonstrated strong performance, with its #1 (Strong Buy) stocks reportedly outperforming the S&P 500 in 26 of the last 32 years, achieving an average annual return of +25.41%. Howmet Aerospace Inc. (HWM), a provider of engineered solutions for the aerospace and transportation industries, exemplifies this system's output, having been designated a Zacks Rank #1 on May 27, 2025. This upgrade is supported by significant positive momentum in its earnings outlook: seven analysts have revised their fiscal 2025 earnings estimates upward in the past 60 days, leading to a $0.20 increase in the Zacks Consensus Estimate to $3.46 per share. Furthermore, HWM boasts an average earnings surprise of 8.8% and is projected to see earnings growth of 28.6% for the current fiscal year, with sales expected to rise by 8.5%. The stock's recent market performance underscores this positive sentiment, with HWM gaining 14.9% over the past four weeks, substantially outpacing the S&P 500's 6.4% gain. The strongly positive sentiment score of 0.8 for the article and 0.9 specifically for HWM further corroborates the optimistic outlook presented for the company, driven by these fundamental and estimate-driven factors.

Key Decisions for Investors

• Investors should consider Howmet Aerospace (HWM) for their watchlist given its Zacks Rank #1 (Strong Buy) status, positive earnings estimate revisions, and strong forecasted growth metrics.
• The recent outperformance of HWM stock relative to the S&P 500, coupled with the upward revisions in earnings estimates, may indicate an opportune moment for investment, potentially ahead of broader institutional buying as suggested by the Zacks methodology.
• Monitor HWM's ongoing earnings performance, particularly its ability to meet or exceed the forecasted 28.6% earnings growth and 8.5% sales increase, as these are key drivers for its current favorable ranking and investor sentiment.