Shares in Howmet Aerospace Inc (NYQ:HWM) are currently trading at 10.77 but a key question for investors is how the economic uncertainty caused by Coronavirus will affect the price.One way of making that assessment is to examine where its strengths lie...
Howmet Aerospace Inc is a player in the Metals & Mining sector and itsshare price has moved by -57.9% over the past three months.
In volatile markets, many investors are keen to buy what they think are cheap stocks - but it's essential torecognise the difference between a genuine bargain and a value trap.Often, the quality of the stock makes all the difference.
The good news is thatHowmet Aerospace Inc scores well against some important financial and technical measures. In particular, it has strong exposure totwo influential drivers of investment returns: high quality and a relatively cheap valuation.
To understand why that matters, here's a closer look:
GET MORE DATA-DRIVEN INSIGHTS INTO NYQ:HWM
Good quality stocks are loved by the market because they're more likely to be solid, dependable businesses. Profitability is important, but so is the firm's financial strength. A track record of improving finances is essential.
One of the stand out quality metrics for Howmet Aerospace Inc is that it passes 6 of the 9 financial tests in the Piotroski F-Score. The F-Score is a world-class accounting-based checklist for finding stocks with an improving financial health trend. A good F-Score suggests that the company has strong signs of quality.
While quality is important, no-one wants to overpay for a stock, so an appealing valuation is vital too. With a weaker economy, earnings forecasts are unclear right across the market. But there are some valuation measures that can help, and one of them is the Earnings Yield.
Earnings Yield compares a company's profit with its market valuation (worked out by dividing its operating profit by its enterprise value). It gives you a total value of the stock (including its cash and debt), which makes it easier to compare different stocks. As a percentage, the higher the Earnings Yield, the better value the share.
A rule of thumb for a reasonable Earnings Yield might be 5%, and the Earnings Yield for Howmet Aerospace Inc is currently 11.4%.
In summary, good quality and relatively cheap valuations are pointers to those stocks that are some of the most appealing to contrarian value investors. It's among these shares that genuine mis-pricing can be found. Once the market recognises that these quality firms are on sale, those prices often rebound.
Finding good quality stocks at attractive prices is a strategy used by some of the world's most successful investors. If you want to find more shares that meet these rules, you can see a comprehensive list on Stockopedia's StockRanks page.
Continued here:
What will drive the Howmet Aerospace Inc share price higher? - Yahoo Finance UK
- why can't i print in the message area? - November 7th, 2009 [November 7th, 2009]
- smoke detectors - November 7th, 2009 [November 7th, 2009]
- Insulation drawings - November 7th, 2009 [November 7th, 2009]
- Boiler. - November 7th, 2009 [November 7th, 2009]
- Electrical Harmonics - November 7th, 2009 [November 7th, 2009]
- axial thrust - November 7th, 2009 [November 7th, 2009]
- Pl inform which make suitable for this specification - November 7th, 2009 [November 7th, 2009]
- CapsLock - November 7th, 2009 [November 7th, 2009]
- How to Calculate Drag Reduction Factor for surge analysis - November 7th, 2009 [November 7th, 2009]
- cable..pls help - November 7th, 2009 [November 7th, 2009]
- 11Kv joints - November 7th, 2009 [November 7th, 2009]
- how to calculate required torque? - November 7th, 2009 [November 7th, 2009]
- IP rating for enclosures - November 7th, 2009 [November 7th, 2009]
- 11kv JOINTS SPACING ON PARALLEL CABLES - November 7th, 2009 [November 7th, 2009]
- beep sounds - November 7th, 2009 [November 7th, 2009]
- Increse speed of pneumatic cylinder - November 7th, 2009 [November 7th, 2009]
- Pipe fittings-Manufacturing/Quality Assurance - November 7th, 2009 [November 7th, 2009]
- kango memolition hammer - November 7th, 2009 [November 7th, 2009]
- Loss calculation in undergound Transmission Cables - November 7th, 2009 [November 7th, 2009]
- Design in ASP.NET - November 7th, 2009 [November 7th, 2009]
- axial pump - November 7th, 2009 [November 7th, 2009]
- Auger bit - November 7th, 2009 [November 7th, 2009]
- Pipe - November 7th, 2009 [November 7th, 2009]
- Centrifugal oil filter ideas - November 7th, 2009 [November 7th, 2009]
- When to install Horizontal Condensate Pot (Probably also called Spun Type) ?? - November 7th, 2009 [November 7th, 2009]
- Confusion about a Resistance Bulb - November 7th, 2009 [November 7th, 2009]
- Loop testing for a NON-HART 4 wire instrument - November 7th, 2009 [November 7th, 2009]
- My VAWT Project, next phase - November 7th, 2009 [November 7th, 2009]
- voltage doubler - November 7th, 2009 [November 7th, 2009]
- How to build corners and joints using Red Oak timbers? - November 7th, 2009 [November 7th, 2009]
- THERMAL OIL BOILER - November 7th, 2009 [November 7th, 2009]
- How Do You Get a Degree in Green Energy? - November 7th, 2009 [November 7th, 2009]
- deareator pegging - November 7th, 2009 [November 7th, 2009]
- 99 ford ranger with no brake pedal at all - November 7th, 2009 [November 7th, 2009]
- CAD tool for electronic circuitry design - November 7th, 2009 [November 7th, 2009]
- hvac - November 7th, 2009 [November 7th, 2009]
- Unfinalized video miniDVD data recovery - November 7th, 2009 [November 7th, 2009]
- eletronics - November 7th, 2009 [November 7th, 2009]
- codless phones programming - November 7th, 2009 [November 7th, 2009]
- Effectiveness in cooling a drink with ice than water? - November 7th, 2009 [November 7th, 2009]
- Free Vibration Analysis of Tapered Composite Wings - November 8th, 2009 [November 8th, 2009]
- Can You Treat Composite Beams or Wings Mathematically like Isotropic Wings? - November 8th, 2009 [November 8th, 2009]
- Particle, Particle in Space, Tell Me About Earthquakes - November 8th, 2009 [November 8th, 2009]
- Russian Rocket Engine – Best in the World - November 8th, 2009 [November 8th, 2009]
- New Online Evaluation of Laminated Composite Stiffnesses - November 8th, 2009 [November 8th, 2009]
- 'Autonomous' helicopters teach themselves to fly - November 8th, 2009 [November 8th, 2009]
- Next Target – Jupiter - November 8th, 2009 [November 8th, 2009]
- NASA's FERMI, Space, and Time - November 8th, 2009 [November 8th, 2009]
- Lunchtime Salon Today in L.A. - November 8th, 2009 [November 8th, 2009]
- A vote for McCain is a vote against science - November 8th, 2009 [November 8th, 2009]
- NASA Study Investigates Mental Overload in Pilots - November 8th, 2009 [November 8th, 2009]
- NASA Releases Columbia Crew Safety Report - November 8th, 2009 [November 8th, 2009]
- What the Stimulus Package Means for Science - November 8th, 2009 [November 8th, 2009]
- All Scientists Have Conflicts of Interest (Duh) - November 8th, 2009 [November 8th, 2009]
- Congress Considers Killing Open-Access Journals - November 8th, 2009 [November 8th, 2009]
- Transmission Swing Angle - December 12th, 2009 [December 12th, 2009]
- Long Weld Neck Flanges - December 12th, 2009 [December 12th, 2009]
- Super Critical Fluid Extraction for Rose Oil - December 12th, 2009 [December 12th, 2009]
- Capacitor Bank Calculations - December 12th, 2009 [December 12th, 2009]
- Power Supplies and Dummy Loads - December 12th, 2009 [December 12th, 2009]
- Standards for Piping Vibration - December 12th, 2009 [December 12th, 2009]
- Automatic Generator Changovers - December 12th, 2009 [December 12th, 2009]
- Synchronous Generators - December 12th, 2009 [December 12th, 2009]
- Suzuki Swift Brakes - Squeaks and Whistles - December 12th, 2009 [December 12th, 2009]
- Flange Serration - December 12th, 2009 [December 12th, 2009]
- Hydraulic Shapes and Reciprocating Machines - December 12th, 2009 [December 12th, 2009]
- No Shortage of Engineers After All! - December 12th, 2009 [December 12th, 2009]
- Delta Starter Diagram - December 12th, 2009 [December 12th, 2009]
- 2002 Chevy Duramax Diesel - Low Voltmeter Reading - December 12th, 2009 [December 12th, 2009]
- Energy Survey and Consumer Mapping Methodoogy - December 12th, 2009 [December 12th, 2009]
- Setback for Geothermal Energy - December 12th, 2009 [December 12th, 2009]
- Darlington Amplifier - December 12th, 2009 [December 12th, 2009]
- Diesel Storage Tank Design - December 12th, 2009 [December 12th, 2009]
- Car MPG Questions - December 12th, 2009 [December 12th, 2009]
- Dark LCD Display - December 12th, 2009 [December 12th, 2009]
- Calculating the Strength of Concrete Floors - December 12th, 2009 [December 12th, 2009]
- Hitachi Projection TV - December 12th, 2009 [December 12th, 2009]
- WW II Water-Injected Engines - December 12th, 2009 [December 12th, 2009]
- Soap to Prevent A1H1N1 Contamination - December 12th, 2009 [December 12th, 2009]
- Car won't shift out of first gear - December 12th, 2009 [December 12th, 2009]