2 stocks to watch after latest US GDP report

Highlights:

• The HWM stock jumped around 34 per cent YoY.
• Howmet Aerospace Inc's revenue rose 12 per cent YoY in Q3 FY22.
• Sales growth of Westinghouse Air Brake Technologies was over nine per cent YoY in Q3 FY22.

The market has recently gone through a flurry of uncertainties, while the looming recession fears have added to investors' concerns. However, the recent GDP data showed that the economy has been resilient in the third quarter against soaring inflation, rising interest rates, and other hovering conditions. The US economy rose 2.9 per cent annual rate from July through September.

The inflation stayed stubbornly at its multi-decade peak in 2022 before cooling down in October. The Fed's hawkish approach might have shown its effect in taming inflation.

So, let's take a quick tour of two industrial stocks, which include Howmet Aerospace Inc. (NYSE:HWM) and Westinghouse Air Brake Technologies Corporation (NYSE:WAB), after the latest GDP data.

Howmet Aerospace Inc. (NYSE:HWM)

The American aerospace, defense, and commercial transportation industrial firm Howmet Aerospace Inc holds a dividend yield of 0.43 per cent. The firm's stock, which manufactures jet engines, fasteners, and other components for aerospace applications, rose 18 per cent YTD and about 34 per cent YoY.

The HWM stock added nearly 22 per cent in the running quarter and touched its 52-week high of US$ 39.24 on November 11, 2022. The aerospace and defense firm announced a dividend of US$ 0.93 per share on the outstanding US$ 3.75 cumulative preferred stock of the company. The dividend will be paid on January 1, 2023.

Howmet Aerospace Inc's revenue rose 12 per cent YoY to US$ 1.43 billion in Q3 FY22, and its EPS was US$ 0.19 apiece, against US$ 0.06 per share in Q3 FY21. The company said that the increase in its overall revenue was driven by the 23 per cent YoY growth in its Commercial Aerospace segment.

Westinghouse Air Brake Technologies Corporation (NYSE:WAB)

The global provider of equipment, digital solutions, and other related services, Westinghouse Air Brake Technologies, had a dividend yield of 0.61 per cent. The stock of the industrial firm, which does its business under the name Wabtec Corporation, jumped about 10 per cent YTD and around 14 per cent YoY.

Westinghouse Air Brake Technologies' sales grew 9.1 per cent YoY to US$ 2.08 billion in Q3 FY22, and its diluted EPS rose 27.5 per cent YoY to US$ 0.88 apiece.

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Bottom line:

The S&P 500 ended its three-day losing streak on Wednesday following the revised release of GDP data. The basic materials segment was the top percentage gainer in the index on Wednesday, while information technology and consumer discretionary segments provided the biggest boost.

In addition, Fed Chair Jerome Powell affirmed that the central bank would ease its aggressive rate-hike campaign in the coming days, dampening market sentiments so far. Investors are anticipating a 50 basis point hike in the policy rates at Fed's next meeting on December 14.