Does Howmet Aerospace (HWM) Have Runway for Growth and Expansion?

ClearBridge Investments, an investment management company, released its “ClearBridge Growth Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. US equities significantly rallied in the second quarter, with the S&P 500 returning 10.9%. As the risk-on sentiment took hold, the benchmark Russell Midcap Growth Index advanced a market-leading 18.2%. Growth stocks led across market caps, outperforming their value counterparts. In this environment, the strategy outperformed the benchmark, driven by strong performance from the “mid cap plus” segment that the Strategy focuses on and solid stock selection in IT, industrials, and financials. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, ClearBridge Growth Strategy highlighted stocks such as Howmet Aerospace Inc. (NYSE:HWM). Howmet Aerospace Inc. (NYSE:HWM) provides advanced engineered solutions for the aerospace and transportation industries. The one-month return of Howmet Aerospace Inc. (NYSE:HWM) was 9.03%, and its shares gained 97.99% of their value over the last 52 weeks. On September 16, 2025, Howmet Aerospace Inc. (NYSE:HWM) stock closed at $187.46 per share, with a market capitalization of $75.57 billion.

ClearBridge Growth Strategy stated the following regarding Howmet Aerospace Inc. (NYSE:HWM) in its second quarter 2025 investor letter:

“The purchases of Howmet Aerospace Inc. (NYSE:HWM) and Axon Enterprise complement existing defense holding L3Harris Technologies, adding exposure to original equipment and aftermarket aerospace and public safety end markets. Both are dominant players in their respective industries with significant runway for growth and margin expansion ahead.”

Howmet Aerospace Inc. (HWM) Could Do Well In H2 2025, Says Jim Cramer

Howmet Aerospace Inc. (NYSE:HWM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 57 hedge fund portfolios held Howmet Aerospace Inc. (NYSE:HWM) at the end of the second quarter, which was 56 in the previous quarter. While we acknowledge the risk and potential of Howmet Aerospace Inc. (NYSE:HWM) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Howmet Aerospace Inc. (NYSE:HWM) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Howmet Aerospace Inc. (NYSE:HWM) and shared Janus Henderson Forty Fund’s views on the company. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.