Howmet Aerospace (HWM) Rose on Continued Demand for Aerospace Parts

Janus Henderson Investors, an investment management company, released its “Janus Henderson Forty Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund returned -8.74 % in the first quarter, compared to the Russell 1000 Growth Index’s 4.28% return.  Stock selection in the consumer discretionary and financial sectors contributed to the relative performance of the fund in the quarter, while selection in information technology and healthcare detracted. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Janus Henderson Forty Fund 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 5.36%, and its shares gained 117.28% of their value over the last 52 weeks. On June 12, 2025, Howmet Aerospace Inc. (NYSE:HWM) stock closed at $171.52 per share, with a market capitalization of $69.238 billion.

Janus Henderson Forty Fund stated the following regarding Howmet Aerospace Inc. (NYSE:HWM) in its Q1 2025 investor letter:

Howmet Aerospace Inc. (NYSE:HWM), a manufacturer of specialized aircraft components, was a top contributor to relative performance. Howmet reported solid earnings driven by continued demand for aerospace parts. The company successfully navigated Boeing’s 2024 challenges while gaining market share from competitors. Strategic investments during the pandemic helped the company gain share over competitors, one of which suffered a major plant fire, likely prolonging Howmet’s advantage.

Is Howmet Aerospace Inc. (HWM) The Best Performing Large Cap Stock So Far in 2025?

Engineers examining stress tests of an aircraft engine, working to make sure its ready for flight.

Howmet Aerospace Inc. (NYSE:HWM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 56 hedge fund portfolios held Howmet Aerospace Inc. (NYSE:HWM) at the end of the first quarter, which was 58 in the previous quarter. While we acknowledge the potential of Howmet Aerospace Inc. (NYSE:HWM) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered Howmet Aerospace Inc. (NYSE:HWM) and shared the list of stocks on Jim Cramer’s radar. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of HWM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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