Howmet Aerospace Inc. (HWM) provides advanced engineered solutions for the aerospace and transportation industries. The shares have been crawling higher for a while and, after a pause in recent months, are popping again, notes John Eade, president of Argus Research.
Howmet offers jet engine components, aerospace fastening systems, and titanium structural parts for mission-critical performance and efficiency. HWM has been volatile over the years, with big advances and huge drops.
Howmet Aerospace Inc. (HWM)
Data by YCharts
After its COVID-19 recovery, the stock settled into a tight range for over a year, The shares broke out in early 2023, crawled higher until July 2023, then traced out a flag back to the 200-day in October 2023 (to the low $40s).
From there, the slope steepened as the stock ran to $70 by March. After a flag, HWM took off in late April, rising to $85 by May. After another flag, the stock bounced and hit a recovery high in August 2024. We would now put a stop-loss just below chart and moving-average support at $240. We would take profits at $285.
As for the overall market, the semiconductor equipment names have started to go parabolic. We all know what prior AI names have done when the slopes of the highest relative strength stocks steepen. Momentum takes over and the chase higher becomes relentless.
A 50% retracement of the recent pullback for the S&P 500 Index (^SPX) comes in at 7,430, and a 61.8% takeback targets 7,475. Any overhead Fibonacci retracement targets are valid only if the recent intraday low at 7,238 holds.
