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Honeywell International Inc. (HON) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Honeywell International Inc. (HON - Free Report) closed at $213.46, marking a -1.06% move from the previous day. This change lagged the S&P 500's 0.14% loss on the day. Meanwhile, the Dow lost 0.45%, and the Nasdaq, a tech-heavy index, lost 0.02%.

Coming into today, shares of the company had gained 2.83% in the past month. In that same time, the Conglomerates sector lost 0.19%, while the S&P 500 lost 0.13%.

Honeywell International Inc. will be looking to display strength as it nears its next earnings release. In that report, analysts expect Honeywell International Inc. to post earnings of $2.09 per share. This would mark year-over-year growth of 0.97%. Meanwhile, our latest consensus estimate is calling for revenue of $8.73 billion, down 1.88% from the prior-year quarter.

Any recent changes to analyst estimates for Honeywell International Inc. should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.73% lower within the past month. Honeywell International Inc. is currently sporting a Zacks Rank of #4 (Sell).

Looking at its valuation, Honeywell International Inc. is holding a Forward P/E ratio of 24.07. This valuation marks a premium compared to its industry's average Forward P/E of 18.12.

Meanwhile, HON's PEG ratio is currently 2.31. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Diversified Operations stocks are, on average, holding a PEG ratio of 1.33 based on yesterday's closing prices.

The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 67, putting it in the top 27% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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