We believe Howmet Aerospace stock (NYSE: HWM), an aerospace company that manufactures components for jet engines, is a better pick than its sector peer, Textron stock (NYSE: TXT
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TXT
Interestingly, Textron has had a Sharpe Ratio of 0.3 since early 2017, while the figure stood at 0.4 for Howmet, lower than 0.6 for the S&P 500 Index over the same period. This compares with the Sharpe of 1.3 for the Trefis Reinforced Value portfolio. Sharpe is a measure of return per unit of risk, and high-performance portfolios can provide the best of both worlds.
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