2 stocks to watch after latest US GDP report - Kalkine Media

December 04, 2022 05:56 AM PST | By Rupam Roy
Follow us on Google News:

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.

Stock performance of two industrial stocksSource: ©Kalkine Media®; © Canva via Canva.com

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.


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media LLC (Kalkine Media, we or us) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it, as necessary.



Top Listed Companies