Honeywell International Inc. (HON - Free Report) recently unveiled a security management solution for industrial cybersecurity, particularly targeted at industrial customers who deal with diverse process control networks, sites and vendors.
Based on Honeywell's ICS Shield, the multi-site solution for cybersecurity management lowers security vulnerabilities, thus leading to reduction in operational risks. Notably, the ICS Shield is a top-down operational technology security management platform that secures connected industrial control system (ICS) environments. Also, it secures remote field assets from a single security operations center.
Honeywell Managed Security Services allows industrial companies to solve major security gap issues by providing automated patching, secure remote access, continuous monitoring and incident response in addition to firewall and intrusion detection system management capabilities. Notably, Honeywell integrated and boosted ICS Shield technology with the help of Nextnine buyout in 2017. The transaction augmented the company’s cyber security portfolio with complementary products and services.
Existing Business Scenario
Honeywell has a balanced mix of long- and short-cycle businesses along with decent organic growth in new products and expansion in high-growth regions, which augur well for the long run. Additionally, the company remains focused on increasing its presence in high-growth regions owing to a flexible and disciplined focus on cost and productivity. We believe that demand for Honeywell's construction, automobiles and airplanes products are also likely to grow backed by expansion of emerging markets.
Moreover, the company’s continuous focus on investment in innovative technologies is likely to help it maintain leadership position. Currently, Honeywell is experiencing significant demand for the company’s connected aircraft offerings from its customers. In a year’s time, shares of this Zacks Rank #2 (Buy) company have gained 12.9% against the industry’s decline of 14.1%.
The company also remains well-positioned to gain from long-term expansion in the markets like aerospace, facility automation and automotive turbochargers on the back of its strong market share and product line-up. This apart, Honeywell’s diligent focus on working capital management, free cash flow generation and a conservative balance sheet are key attributes amid a challenging macroeconomic environment.
Other Stocks to Consider
Some other top-ranked stocks from the same space are Federal Signal Corporation (FSS - Free Report) , Raven Industries, Inc. (RAVN - Free Report) and Crane Company (CR - Free Report) . All these companies carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Federal Signal outpaced estimates in the preceding four quarters, with an average earnings surprise of 16.1%.
Raven Industries surpassed estimates twice in the trailing four quarters, with an average positive earnings surprise of 9.8%.
Crane exceeded estimates in the preceding four quarters, with an average earnings surprise of 2.1%.
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