Uncertain outlook could slow their progress

Article Excerpt

On April 1, 2020, the old Arconic Inc. split into two new companies: Howmet and Arconic Corp. As a result, each Arconic Inc. share automatically converted to one share of Howmet; investors also received one share of Arconic Corp. for every four shares of Arconic Inc. they held. This breakup is already paying off: Howmet is up 135% since the split, while Arconic has soared 340%. For now, however, you should hold off on new buying as both are vulnerable to the current supply chain distributions. HOWMET AEROSPACE INC. $31 is a hold. The company (New York symbol HWM; Manufacturing & Industry sector; Shares outstanding: 427.2 million; Market cap: $13.2 billion; Price-to-sales ratio: 2.7; Dividend yield: 0.3%; TSINetwork Rating: Average; www.howmet.com) makes a variety of industrial parts, from jet engine components and fasteners to forged aluminum wheels. Demand for the company’s aircraft-related products continues to improve as COVID-19 travel restrictions ease. That offsets weaker sales to military clients. In the quarter ended September 30, 2021, revenue…