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Honeywell International Inc. (HON) Surpasses Market Returns: Some Facts Worth Knowing

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The latest trading session saw Honeywell International Inc. (HON - Free Report) ending at $201.18, denoting a +1.08% adjustment from its last day's close. The stock outperformed the S&P 500, which registered a daily gain of 0.89%. On the other hand, the Dow registered a gain of 1.03%, and the technology-centric Nasdaq increased by 1.25%.

The the stock of company has risen by 0.05% in the past month, lagging the Conglomerates sector's gain of 6.49% and the S&P 500's gain of 3.56%.

Investors will be eagerly watching for the performance of Honeywell International Inc. in its upcoming earnings disclosure. On that day, Honeywell International Inc. is projected to report earnings of $2.18 per share, which would represent year-over-year growth of 5.31%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.01 billion, up 1.6% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.96 per share and a revenue of $38.41 billion, representing changes of +8.73% and +4.77%, respectively, from the prior year.

Any recent changes to analyst estimates for Honeywell International Inc. should also be noted by investors. 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.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.08% higher. As of now, Honeywell International Inc. holds a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Honeywell International Inc. has a Forward P/E ratio of 19.98 right now. This signifies a premium in comparison to the average Forward P/E of 17.63 for its industry.

Meanwhile, HON's PEG ratio is currently 2.24. 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. Diversified Operations stocks are, on average, holding a PEG ratio of 2.24 based on yesterday's closing prices.

The Diversified Operations industry is part of the Conglomerates sector. At present, this industry carries a Zacks Industry Rank of 59, placing it within the top 24% of over 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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