Howmet Aerospace Holds a Lot of Potential

21 Mei

HWM Howmet Aerospace holds a lot of potential. They manufacture components for jet engines, fasteners, and titanium structures for aerospace applications, and forge aluminum wheels for heavy trucks.

Aluminum products are an excellent choice to help achieve higher energy efficiencies due to their lighter weight. Just to give you an example, aluminum alloy wheels are 30% lighter than steel wheels.

Higher inflation wouldn't affect this company much. In fact, during their last earnings call, I believe they said that 95% of their costs can be passed onto their customers.

The financials have been great since the split from Arconic Inc., but of course, you need to wait for the fundamentals and the technicals to align before you make an entry.

I made my initial purchase the day of the earnings gap. Now that I have a cushion, I added more during the pullback. I believe this earnings gap pullback shows relative strength; it hasn't even come close to the breakout candle.

This stock is a market leader. It's already up 63% in the last 6 months. Hopefully, I can get a nice swing out of this one. What stocks are on your radar right now?