Is Howmet Aerospace Inc. (HWM) the Top Growing Stock For Trump’s Presidency?

We recently published a list of Top 10 Growing Aerospace and Defense Stocks For Trump’s Presidency. In this article, we are going to take a look at where Howmet Aerospace Inc. (NYSE:HWM) stands against other top growing aerospace and defense stocks for Trump’s Presidency.

There is carnage in the US stock market as the major indices continue to shed points after last week’s aggressive selloff. The Dow was down over 2% with the S&P losing nearly 3% of its value. Nasdaq continued to be the worst of the three, down 4% by market close.

As tariffs continue to spook markets, we look at sectors that are either a safer bet amid the volatility, or provide near-term growth opportunities. In the Aerospace and Defense Industries, such an opportunity is currently presenting itself.

The US is signaling to the rest of the world that it needs to spend more on its own defense rather than relying on the US for military aid. This is making major economies of the world rethink their defense budget allocations.

Since most of the Western world buys its military equipment from the US, the money is eventually going to flow into US companies. This simple bullish thesis is what’s driving the industry and we believe it is time for investors to take positions in these stocks to benefit from this.

To come up with the list of 10 buy and forget Aerospace and Defense stocks for Trump’s Presidency, we only considered stocks with a market cap of at least $2 billion that are the best performers 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)

Howmet Aerospace, a global transportation and aerospace player, is 13.5% off its 52-week high hit just last month. The dip is an opportunity for investors who may have missed out on the last earnings rally.

The company reported a 40% YoY earnings surge, but the more impressive part of the report was the conversion rate. HWM converted 88% of its net income into free cash flow, closing in on the one billion dollar mark.

This amazing financial strength is also backed by near-term growth, with the company projecting over $8.03 billion in revenue and an EPS of $3.17. While growth in the overall business is anticipated, the Commercial aerospace spares segment is likely to grow much faster, accounting for 20% of the total revenue in 2025, up from the previous 17%.

The 18% projected bottom line growth is driving the stock price higher, and with concerns over the economy sparking a sell off, the dip is a buying opportunity if there ever was one!

Overall, HWM ranks 5th on our list of top growing aerospace and defense stocks for Trump’s Presidency. While we acknowledge the potential of HWM as a leading 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 as promising as HWM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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