Can Howmet Aerospace Stock Hold Up When Markets Turn?
Howmet Aerospace (HWM) stock is up 24.5% in 21 trading days. The rally reflects surging aerospace demand and gas turbine growth for data centers, but such moves often invite a tougher question: is the stock truly resilient when markets reverse?
Before judging its downturn reslience, let’s look at where Howmet Aerospace stands today.
- Size: Howmet Aerospace is a $105 Bil company with $8.3 Bil in revenue currently trading at $258.84.
- Fundamentals: Last 12 month revenue growth of 11.1% and operating margin of 25.5%.
- Liquidity: Has Debt to Equity ratio of 0.03 and Cash to Assets ratio of 0.07
- Valuation: Howmet Aerospace stock is currently trading at P/E multiple of 69.3 and P/EBIT multiple of 52.5
- Has returned (median) 34.4% within a year following sharp dips since 2010. See HWM Dip Buy Analysis.
These metrics point to a Strong operational performance, alongside Very High valuation – making the stock Relatively Expensive. For details, see Buy or Sell HWM Stock
That brings us to the key consideration for investors chasing this rally: how resilient is HWM stock if markets turn south? This is where our downturn resilience framework comes in. Suppose HWM stock falls 20-30% to $181 – can investors comfortably hold on? Turns out, the stock has fared worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
2022 Inflation Shock
- HWM stock fell 23.3% from a high of $35.73 on 8 June 2021 to $27.41 on 1 December 2021 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 16 February 2022
- Since then, the stock increased to a high of $265.11 on 2 March 2026 , and currently trades at $258.84
| HWM | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -23.3% | -25.4% |
| Time to Full Recovery | 77 days | 464 days |
2020 Covid Pandemic
- HWM stock fell 64.8% from a high of $26.11 on 19 February 2020 to $9.19 on 23 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 10 December 2020
| HWM | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -64.8% | -33.9% |
| Time to Full Recovery | 262 days | 148 days |
2018 Correction
- HWM stock fell 26.6% from a high of $16.86 on 10 September 2018 to $12.37 on 24 December 2018 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 3 May 2019
| HWM | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -26.6% | -19.8% |
| Time to Full Recovery | 130 days | 120 days |
2008 Global Financial Crisis
- HWM stock fell 89.0% from a high of $108.88 on 13 July 2007 to $12.00 on 6 March 2009 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 6 November 2024
| HWM | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -89.0% | -56.8% |
| Time to Full Recovery | 5,724 days | 1,480 days |
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