Keep holding these after their big gains

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; shareholders also received one share of Arconic Corp. for every four shares of Arconic Inc. they held. This breakup continues to pay off for investors: Howmet is up 157% since the split, while Arconic has soared by a dizzying 245%. Still, both stocks will likely stay in a narrow range for the next few months as rising prices for raw materials and labour challenge their earnings growth. HOWMET AEROSPACE INC. $33 is a hold. The company (New York symbol HWM; Manufacturing & Industry sector; Shares outstanding: 417.9 million; Market cap: $13.8 billion; Dividend yield: 0.2%; Takeover Target Rating: Medium; www.howmet.com) makes a range of industrial parts, from jet engine components and fasteners to forged aluminum wheels. Revenue in the first quarter of 2022 rose 9.5%, to $1.32 billion from $1.21 billion a year earlier. That’s due…