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Honeywell's JetWave Hardware Chosen by ExecuJet South Africa

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Honeywell International Inc. (HON - Free Report) recently confirmed that its JetWave satellite communications hardware has been installed for the first time in Africa. ExecuJet South Africa — a private aviation jet company — has installed Honeywell’s JetWave hardware onboard its Global Express and Challenger 604 aircraft at the Johannesburg base.

Notably, the company’s JetWave satellite communications hardware allows aircraft to connect to Ka-band satellite communications network. This enables business jet operators to offer high-speed, reliable, inflight connectivity service to passengers. With access to the Inmarsat Jet ConneX network, the JetWave system enables jet operators to provide seamless data connectivity to passengers. Notably, Inmarsat’s Jet ConneX service enables business jet operators to deliver uninterrupted, high quality Wi-Fi experience to its passengers.

Existing Business Scenario

With continued offerings in the Aerospace business, Honeywell is focusing on expanding its industry-leading range of Connected Aircraft offerings. The company is well positioned to gain from long-term expansion in markets like aerospace, facility automation and automotive turbochargers on the back of its strong market share and product lineup. At the same time, the company has been boosting its sales outside the United States, particularly in emerging markets like China. As emerging markets expand, demand for Honeywell's construction, automobiles and airplane products will grow.

Moreover, Honeywell’s balanced mix of long- and short-cycle businesses, along with decent organic growth in new products and expansion in high-growth regions augur well on a long-term perspective. With a flexible yet disciplined focus on cost and productivity, the company remains focused on increasing its presence in high-growth regions. In addition, it is building a robust pipeline of new products.

In a year’s time, shares of this Zacks Rank #2 (Buy) company have returned 9.8% against the industry’s decline of 13.6%.

Further, the company’s diversified business portfolio has the potential to earn consistent above-average returns and mitigate operating risks. Its focus on working capital management, free cash flow generation and a conservative balance sheet remain key positive attributes amid a challenging macroeconomic environment.

Other Stocks to Consider

Some other top-ranked stocks from the same space are Raven Industries, Inc. , Federal Signal Corporation (FSS - Free Report) and United Technologies Corporation . While Raven Industries sports a Zacks Rank #1 (Strong Buy), Federal Signal and United Technologies carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Raven Industries surpassed estimates twice in the trailing four quarters, with an average positive earnings surprise of 9.78%.

Federal Signal outpaced estimates in each of the preceding four quarters, with an average earnings surprise of 16.07%.

United Technologies surpassed estimates in each of the preceding four quarters, with an average earnings surprise of 6.82%.

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