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Honeywell International Inc. (HON) Registers a Bigger Fall Than the Market: Important Facts to Note

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In the latest close session, Honeywell International Inc. (HON - Free Report) was down 1.16% at $235.30. This change lagged the S&P 500's 0.4% loss on the day. Elsewhere, the Dow lost 0.98%, while the tech-heavy Nasdaq added 0.18%.

Coming into today, shares of the company had gained 6.23% in the past month. In that same time, the Conglomerates sector gained 7.02%, while the S&P 500 gained 4.97%.

Analysts and investors alike will be keeping a close eye on the performance of Honeywell International Inc. in its upcoming earnings disclosure. The company's earnings report is set to go public on July 24, 2025. The company is predicted to post an EPS of $2.64, indicating a 6.02% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $10.02 billion, showing a 4.6% escalation compared to the year-ago quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.4 per share and revenue of $40.21 billion. These totals would mark changes of +5.16% and +4.44%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Honeywell International Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 0.23% higher within the past month. Honeywell International Inc. currently has a Zacks Rank of #3 (Hold).

In the context of valuation, Honeywell International Inc. is at present trading with a Forward P/E ratio of 22.89. Its industry sports an average Forward P/E of 18.67, so one might conclude that Honeywell International Inc. is trading at a premium comparatively.

One should further note that HON currently holds a PEG ratio of 2.71. 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 2.01 at the close of the market yesterday.

The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 94, putting it in the top 39% 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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