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Honeywell International Inc. (HON) Rises But Trails Market: What Investors Should Know

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In the latest market close, Honeywell International Inc. (HON - Free Report) reached $211.85, with a +0.82% movement compared to the previous day. The stock lagged the S&P 500's daily gain of 1.77%. Meanwhile, the Dow experienced a rise of 1.42%, and the technology-dominated Nasdaq saw an increase of 2.28%.

Shares of the company have depreciated by 0.86% over the course of the past month, underperforming the Conglomerates sector's loss of 0.07% and outperforming the S&P 500's loss of 5.73%.

The investment community will be paying close attention to the earnings performance of Honeywell International Inc. in its upcoming release. The company is predicted to post an EPS of $2.21, indicating a 1.78% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $9.57 billion, indicating a 5.16% increase compared to the same quarter of the previous year.

HON's full-year Zacks Consensus Estimates are calling for earnings of $10.34 per share and revenue of $40.31 billion. These results would represent year-over-year changes of +4.55% and +4.7%, respectively.

Any recent changes to analyst estimates for Honeywell International Inc. should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. At present, Honeywell International Inc. boasts a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that Honeywell International Inc. has a Forward P/E ratio of 20.31 right now. This represents a premium compared to its industry's average Forward P/E of 15.44.

It's also important to note that HON currently trades at a PEG ratio of 2.56. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Diversified Operations industry stood at 1.72 at the close of the market yesterday.

The Diversified Operations industry is part of the Conglomerates sector. This industry, currently bearing a Zacks Industry Rank of 63, finds itself in the top 26% echelons of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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