03/20/2026 | Press release | Distributed by Public on 03/19/2026 23:34
Howmet Aerospace (HWM) stock has fallen by 12.1% in less than a month, from $265.11 on 2nd Mar, 2026 to $232.94 now. What comes next? We think that the stock could fall even more. The current correction, when put in context of stock's Very High valuation, suggest possibility of further downside. A price of $164 is not out of question, especially considering that the stock has seen this level in the last 5 years. Read Buy or Sell Howmet Aerospace Stock to see how we arrive at this opinion.
So should you wait before buying this dip? Perhaps. There is no perfect way to time the dips. Nevertheless, here is another perspective on HWM stock to help you make the decision. Historically, the median return for the 12-month period following sharp dips was 7.9%, with median peak return reaching 35%. We define sharp dip as stock going down 20% or more, in less than 30 day period.
Below, we get into details of historical dips and subsequent returns.
Trefis: HWM Stock Insights
Historical Median Returns Post Dips
| Period | Past Median Return |
| 1M | 4.2% |
| 3M | -0.6% |
| 6M | 7.4% |
| 12M | 7.9% |
Historical Dip-Wise Details
HWM had 14 events since 1/1/2010 where the dip threshold of -20% within 30 days was triggered
| 30 Day Dip | HWM Subsequent Performance | |||||||
| Date | HWM | SPY | 1Y |
Peak Return |
Max Drop |
# Days to Peak |
||
| Median | 8% | 35% | -24% | 162 | ||||
| 3092020 | -21% | -17% | 69% | 72% | -48% | 361 | ||
| 12242018 | -23% | -16% | 95% | 98% | 0% | 357 | ||
| 4302018 | -27% | -4% | 22% | 32% | -9% | 161 | ||
| 3012018 | -21% | -4% | -22% | 5% | -32% | 8 | ||
| 6272017 | -22% | 1% | -22% | 42% | -22% | 199 | ||
| 11012016 | -33% | -1% | 34% | 63% | -8% | 113 | ||
| 1122016 | -22% | -7% | -2% | 56% | -20% | 106 | ||
| 11162015 | -20% | 4% | -19% | 37% | -30% | 163 | ||
| 7272015 | -20% | -1% | 12% | 19% | -29% | 275 | ||
| 3192015 | -21% | 3% | -22% | 9% | -48% | 43 | ||
| 12192011 | -22% | -4% | 3% | 27% | -5% | 46 | ||
| 8082011 | -25% | -11% | -23% | 13% | -29% | 23 | ||
| 5182010 | -21% | -6% | 40% | 54% | -15% | 323 | ||
| 2192010 | -20% | -2% | 31% | 31% | -26% | 360 | ||
Howmet Aerospace Passes Basic Financial Quality Checks
Revenue growth, profitability, cash flow, and balance sheet strength need to be evaluated to reduce the risk of a dip being the sign of a deteriorating business situation.
| Quality Metrics | Value | Quality Check |
| Revenue Growth (LTM) | 11.1% | Pass |
| Revenue Growth (3-Yr Avg) | 13.4% | Pass |
| Operating Cash Flow Margin (LTM) | 22.8% | Pass |
| Leverage (see below) | - | Pass |
| => Interest Coverage Ratio | 13.2 | |
| => Cash To Interest Expense Ratio | 4.9 |
Not sure if you can take a call on HWM stock? Consider portfolio approach
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