Howmet Aerospace Inc. (HWM): A Bull Case Theory

We came crossed a bullish thesis connected Howmet Aerospace Inc. connected R. Dennis’s Substack by OppCost. In this article, we volition summarize the bulls’ thesis on HWM. Howmet Aerospace Inc.'s share was trading astatine $215.53 as of January 27th. HWM’s trailing and forward P/E were 60.50 and 48.78 respectively according to Yahoo Finance.

Photo by emiel molenaar connected Unsplash

Howmet Aerospace Inc. provides precocious engineered solutions for the aerospace and proscription industries successful the United States and internationally. HWM is positioned arsenic a mission-critical supplier astatine the halfway of planetary aerospace and concern infrastructure, making it a concern that is not conscionable a marketplace person but an implicit necessity. The institution specializes successful highly engineered components specified arsenic turbine blades susceptible of operating astatine utmost temperatures, and for galore aerospace programs it serves arsenic a sole-source supplier.

This creates a durable moat rooted successful proprietary materials science, heavy lawsuit integration, and agelong qualification cycles that marque replacement some costly and impractical. As a result, Howmet sits astatine the bosom of some commercialized and defense aviation, benefiting straight from semipermanent secular request alternatively than short-term cycles.

A large near-to-medium-term tailwind comes from the aerospace aftermarket. Ongoing accumulation delays astatine craft manufacturers person forced airlines to support planes successful work longer, driving a surge successful request for motor spares and replacement parts. This aftermarket vulnerability is particularly charismatic fixed its precocious margins and recurring nature, areas wherever Howmet has consistently demonstrated execution strength. Beyond aerospace, the institution is besides benefiting from accelerating request successful its concern state turbine business, driven by the rapidly increasing powerfulness needs of AI-driven data centers, adding a 2nd structural maturation vector to the story.

Operationally, Howmet has established itself arsenic a reliable “beat and raise” compounder, having consistently lifted guidance done 2025 and present targeting astir $9 cardinal successful gross by 2026. While the banal has already delivered a beardown run, this spot has created an accidental successful the options marketplace alternatively than a crushed to measurement aside.

Selling February 2026 $190 puts allows investors to make income portion maintaining a meaningful borderline of information comparative to existent prices and cardinal method levels. If the shares stay elevated, the premium is captured outright; if volatility creates a pullback, investors are positioned to ain a high-quality, generational plus astatine a discounted introduction price. This attack reflects disciplined superior allocation—getting paid to hold portion anchoring vulnerability to 1 of the indispensable backbones of the aerospace recovery.