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Honeywell International Inc. (HON) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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The latest trading session saw Honeywell International Inc. (HON - Free Report) ending at $208.45, denoting a -0.39% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a loss of 0.02% for the day. Meanwhile, the Dow gained 0.2%, and the Nasdaq, a tech-heavy index, lost 0.09%.

The company's shares have seen an increase of 5.67% over the last month, not keeping up with the Conglomerates sector's gain of 8.3% and outstripping the S&P 500's gain of 4.59%.

The investment community will be paying close attention to the earnings performance of Honeywell International Inc. in its upcoming release. The company is expected to report EPS of $2.38, up 6.73% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $9.42 billion, up 2.95% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $10.09 per share and a revenue of $38.61 billion, demonstrating changes of +10.15% and +5.31%, respectively, from the preceding year.

Any recent changes to analyst estimates for Honeywell International Inc. should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. 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.

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 3.3% higher within the past month. At present, Honeywell International Inc. boasts a Zacks Rank of #3 (Hold).

In terms of valuation, Honeywell International Inc. is currently trading at a Forward P/E ratio of 20.74. Its industry sports an average Forward P/E of 18.2, so one might conclude that Honeywell International Inc. is trading at a premium comparatively.

We can additionally observe that HON currently boasts a PEG ratio of 2.26. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Diversified Operations industry was having an average PEG ratio of 1.83.

The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 45, putting it in the top 18% of all 250+ industries.

The Zacks Industry Rank is ordered 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.

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