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Honeywell International Inc. (HON) Stock Slides as Market Rises: Facts to Know Before You Trade

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The latest trading session saw Honeywell International Inc. (HON - Free Report) ending at $194.61, denoting a -1.61% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily gain of 0.41%. Meanwhile, the Dow experienced a rise of 0.36%, and the technology-dominated Nasdaq saw an increase of 0.45%.

The the stock of company has risen by 7.68% in the past month, leading the Conglomerates sector's gain of 7.45% and the S&P 500's gain of 4.91%.

The investment community will be paying close attention to the earnings performance of Honeywell International Inc. in its upcoming release. It is anticipated that the company will report an EPS of $2.59, marking a 2.78% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $9.7 billion, up 5.63% from the prior-year quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $9.16 per share and a revenue of $36.92 billion, indicating changes of +4.57% and +4.11%, respectively, from the former year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Honeywell International Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 0.02% lower within the past month. Currently, Honeywell International Inc. is carrying a Zacks Rank of #3 (Hold).

With respect to valuation, Honeywell International Inc. is currently being traded at a Forward P/E ratio of 21.59. This signifies a premium in comparison to the average Forward P/E of 17.03 for its industry.

It is also worth noting that HON currently has a PEG ratio of 2.55. 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. The Diversified Operations was holding an average PEG ratio of 2.23 at yesterday's closing price.

The Diversified Operations industry is part of the Conglomerates sector. With its current Zacks Industry Rank of 68, this industry ranks in the top 27% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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