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Buy These Diversified Operations Stocks After General Electric's Strong Earnings
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General Electric's (GE - Free Report) ) stock spiked +6% today after the diverse industrial company blasted its second-quarter top and bottom line expectations this morning.
Second-quarter earnings of $0.68 per share topped estimates of $0.46 a share by 48% with sales coming in 5% above expectations at $15.86 billion. This was despite earnings dipping -13% from a tougher to-compete-against prior year quarter with Q2 sales down -13% from a year ago as well.
Still, the better-than-expected Q2 results are driving GE shares higher with General Electric highlighting robust services growth across its portfolio including increased demand at GE Aerospace and record Renewable Energy orders.
Image Source: Zacks Investment Research
Setting the Tone
At the moment General Electric stock lands a Zacks Rank #3 (Hold) and has set the tone for other Zacks Diversified Operations Industry stocks. Notably, this industry is in the top 42% of over 250 Zacks industries and boasts several top-rated stocks.
To that point, Honeywell International (HON - Free Report) ) and Griffon Corporation (GFF - Free Report) ) sport a Zacks Rank #2 (Buy) and are two companies’ investors will certainly want to watch ahead of their quarterly reports on Thursday, July 27.
Honeywell Q2 Preview: Like General Electric, Honeywell has an iconic brand among industrial appliances along with a strong presence in aerospace that includes commercial aviation and defense.
Honeywell’s Q2 earnings are anticipated to rise 5% from a year ago at $2.20 per share with sales forecasted to be up 2% to $9.17 billion. More impressive, Honeywell has topped earnings expectations for a very astonishing 25 consecutive quarters most recently beating Q1 EPS estimates by 7%.
Image Source: Zacks Investment Research
Griffon Q3 Preview: Anticipation is high for Griffon’s fiscal third-quarter results after the diversified management company crushed its Q2 earnings expectations by 78% in May.
Griffon’s Home & Building Products segment may continue to give the company a boost although Q3 earnings are expected to be down -19% at $0.99 per share following a tough to-compete quarter that saw EPS at $1.23. Third-quarter sales are expected to slightly dip by -2% to $752 million.
With that being said, General Electric's earnings beat has only lifted optimism for Griffon’s results with shares of GFF standing out in terms of value and the company’s growth has been stellar in recent years.
Image Source: Zacks Investment Research
Earnings Estimate Revisions
Rising earnings estimates make Honeywell and Griffon stock attractive at the moment and are an indication of more short-term upside. This largely attributes to their Zacks Rank #2 (Buy) as fiscal 2023 and FY24 earnings estimates have trended higher.
Honeywell’s annual earnings are now expected to be up 4% this year and rise another 9% in FY24 at $10.04 per share, Plus, earnings estimates have remained higher throughout the quarter.
Image Source: Zacks Investment Research
Looking at Griffon, following a very stellar year earnings are expected to dip -3% in FY23 but rebound and rise 1% in FY24 at $4.02 per share. More reassuring is that earnings estimates are nicely up over the last 60 days.
Image Source: Zacks Investment Research
As for General Electric, its stock is worth holding as annual earnings are expected to be down -22% this year but rebound and soar 92% in FY24 at $3.89 per share. However, FY24 earnings estimates are modestly lower compared to 90 days ago but could start rising after the company’s strong Q2 results.
Image Source: Zacks Investment Research
Bottom Line
Opportunity is brewing among the Zacks Diversified Operations Industry with many of these stocks standing out before their quarterly reports and General Electric's results set the tone. Along with Honeywell International and Griffon Corporation, Federal Signal (FSS - Free Report) ), and ITT Inc (ITT - Free Report) ) are two other top-rated stocks to consider in the space.
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Buy These Diversified Operations Stocks After General Electric's Strong Earnings
General Electric's (GE - Free Report) ) stock spiked +6% today after the diverse industrial company blasted its second-quarter top and bottom line expectations this morning.
Second-quarter earnings of $0.68 per share topped estimates of $0.46 a share by 48% with sales coming in 5% above expectations at $15.86 billion. This was despite earnings dipping -13% from a tougher to-compete-against prior year quarter with Q2 sales down -13% from a year ago as well.
Still, the better-than-expected Q2 results are driving GE shares higher with General Electric highlighting robust services growth across its portfolio including increased demand at GE Aerospace and record Renewable Energy orders.
Image Source: Zacks Investment Research
Setting the Tone
At the moment General Electric stock lands a Zacks Rank #3 (Hold) and has set the tone for other Zacks Diversified Operations Industry stocks. Notably, this industry is in the top 42% of over 250 Zacks industries and boasts several top-rated stocks.
To that point, Honeywell International (HON - Free Report) ) and Griffon Corporation (GFF - Free Report) ) sport a Zacks Rank #2 (Buy) and are two companies’ investors will certainly want to watch ahead of their quarterly reports on Thursday, July 27.
Honeywell Q2 Preview: Like General Electric, Honeywell has an iconic brand among industrial appliances along with a strong presence in aerospace that includes commercial aviation and defense.
Honeywell’s Q2 earnings are anticipated to rise 5% from a year ago at $2.20 per share with sales forecasted to be up 2% to $9.17 billion. More impressive, Honeywell has topped earnings expectations for a very astonishing 25 consecutive quarters most recently beating Q1 EPS estimates by 7%.
Image Source: Zacks Investment Research
Griffon Q3 Preview: Anticipation is high for Griffon’s fiscal third-quarter results after the diversified management company crushed its Q2 earnings expectations by 78% in May.
Griffon’s Home & Building Products segment may continue to give the company a boost although Q3 earnings are expected to be down -19% at $0.99 per share following a tough to-compete quarter that saw EPS at $1.23. Third-quarter sales are expected to slightly dip by -2% to $752 million.
With that being said, General Electric's earnings beat has only lifted optimism for Griffon’s results with shares of GFF standing out in terms of value and the company’s growth has been stellar in recent years.
Image Source: Zacks Investment Research
Earnings Estimate Revisions
Rising earnings estimates make Honeywell and Griffon stock attractive at the moment and are an indication of more short-term upside. This largely attributes to their Zacks Rank #2 (Buy) as fiscal 2023 and FY24 earnings estimates have trended higher.
Honeywell’s annual earnings are now expected to be up 4% this year and rise another 9% in FY24 at $10.04 per share, Plus, earnings estimates have remained higher throughout the quarter.
Image Source: Zacks Investment Research
Looking at Griffon, following a very stellar year earnings are expected to dip -3% in FY23 but rebound and rise 1% in FY24 at $4.02 per share. More reassuring is that earnings estimates are nicely up over the last 60 days.
Image Source: Zacks Investment Research
As for General Electric, its stock is worth holding as annual earnings are expected to be down -22% this year but rebound and soar 92% in FY24 at $3.89 per share. However, FY24 earnings estimates are modestly lower compared to 90 days ago but could start rising after the company’s strong Q2 results.
Image Source: Zacks Investment Research
Bottom Line
Opportunity is brewing among the Zacks Diversified Operations Industry with many of these stocks standing out before their quarterly reports and General Electric's results set the tone. Along with Honeywell International and Griffon Corporation, Federal Signal (FSS - Free Report) ), and ITT Inc (ITT - Free Report) ) are two other top-rated stocks to consider in the space.