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Honeywell International Inc. (HON) Gains As Market Dips: What You Should Know

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In the latest trading session, Honeywell International Inc. (HON - Free Report) closed at $193.23, marking a +0.54% move from the previous day. This move outpaced the S&P 500's daily loss of 0.41%. At the same time, the Dow lost 0.11%, and the tech-heavy Nasdaq lost 4.08%.

Coming into today, shares of the company had lost 0.4% in the past month. In that same time, the Conglomerates sector gained 1.59%, while the S&P 500 gained 6.51%.

Investors will be hoping for strength from Honeywell International Inc. as it approaches its next earnings release, which is expected to be April 27, 2023. On that day, Honeywell International Inc. is projected to report earnings of $1.93 per share, which would represent year-over-year growth of 1.05%. Our most recent consensus estimate is calling for quarterly revenue of $8.49 billion, up 1.4% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.04 per share and revenue of $36.63 billion. These totals would mark changes of +3.2% and +3.28%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Honeywell International Inc.These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.04% higher. Honeywell International Inc. is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Honeywell International Inc. is currently trading at a Forward P/E ratio of 21.27. For comparison, its industry has an average Forward P/E of 17.08, which means Honeywell International Inc. is trading at a premium to the group.

Also, we should mention that HON has a PEG ratio of 2.36. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Diversified Operations industry currently had an average PEG ratio of 1.51 as of yesterday's close.

The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 50, putting it in the top 20% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

To follow HON in the coming trading sessions, be sure to utilize Zacks.com.


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