Back to top

Image: Bigstock

Honeywell Finishes Initial Test of SURF IA Safety Technology

Read MoreHide Full Article

Honeywell International Inc. (HON - Free Report) recently concluded the initial testing phase of its latest safety technology — the Surface Indications and Alert System (SURF IA). Notably, the technology was developed under the Single European Sky Air Traffic Management Research program that includes program partners like Airbus, Dassault and Eurocontrol. As a matter of fact, the company’s SURF IA technology will enable airlines and business jets to evade runway accidents and collisions.

This technology is the latest addition to the company’s portfolio of safety-based products developed for the aerospace industry, which includes SmartRunway, SmartLanding and SmartTraffic Collision Avoidance System. With the help of software-based data analysis and algorithms, the company’s new technology will provide visual and audio warnings to flight crews, enabling them to take real-time decisions and avoid runway accidents. Notably, the company plans to commence full-scale production development after successful prototype testing on-board its test aircraft.

Our Take

Although Honeywell's proactive restructuring initiatives have positioned it to navigate better than many of its peers, it is yet to witness signs of stabilization in few major end markets. For instance, a change in the U.S. government's defense and aerospace funding could adversely impact sales of Aerospace's defense and space-related products in the quarters ahead.

In the past three months, shares of this Zacks Rank #4 (Sell) company have lost 3.6% compared with the industry’s decline of 9.0%.

Also, Honeywell is presently facing inflationary headwinds across its entire supply-chain process. For instance, the company is currently experiencing inflation in a number of areas, especially logistics, transportation and in certain material prices like metals. Escalating costs might dent Honeywell's profitability in the quarters ahead. Moreover, high R&D costs could also be a drag on the Aerospace segment's profitability, going forward.

Stocks to Consider

Some better-ranked stocks in the same space are Macquarie Infrastructure Company , Federal Signal Corporation (FSS - Free Report) and Crane Company (CR - Free Report) . While Macquarie Infrastructure sports a Zacks Rank #1 (Strong Buy), Federal Signal and Crane carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Macquarie Infrastructure surpassed estimates twice in the trailing four quarters, the average positive earnings surprise being 3.85%.

Federal Signal outpaced estimates in each of the preceding four quarters, the average earnings surprise being 21.18%.

Crane outpaced estimates in each of the preceding four quarters, the average earnings surprise being 5.04%.

3 Medical Stocks to Buy Now

The greatest discovery in this century of biology is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating revenue, and cures for a variety of deadly diseases are in the pipeline.

So are big potential profits for early investors. Zacks has released an updated Special Report that explains this breakthrough and names the best 3 stocks to ride it.

See them today for free >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Honeywell International Inc. (HON) - free report >>

Federal Signal Corporation (FSS) - free report >>

Crane Company (CR) - free report >>

Published in