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Honeywell International Inc. (HON) Gains But Lags Market: What You Should Know
In the latest trading session, Honeywell International Inc. (HON - Free Report) closed at $191.16, marking a +0.67% move from the previous day. The stock lagged the S&P 500's daily gain of 1.3%. Meanwhile, the Dow gained 0.98%, and the Nasdaq, a tech-heavy index, added 7.48%.
Prior to today's trading, shares of the company had lost 5.73% over the past month. This has lagged the Conglomerates sector's loss of 3.36% and the S&P 500's loss of 2.95% in that time.
Honeywell International Inc. will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.92, up 0.52% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.49 billion, up 1.39% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.03 per share and revenue of $36.63 billion. These totals would mark changes of +3.08% and +3.28%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Honeywell International Inc.These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. Within the past 30 days, our consensus EPS projection has moved 0.02% lower. Honeywell International Inc. is currently a Zacks Rank #3 (Hold).
In terms of valuation, Honeywell International Inc. is currently trading at a Forward P/E ratio of 21.02. For comparison, its industry has an average Forward P/E of 12.43, which means Honeywell International Inc. is trading at a premium to the group.
Meanwhile, HON's PEG ratio is currently 2.36. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. HON's industry had an average PEG ratio of 1.45 as of yesterday's close.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 146, putting it in the bottom 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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.