Honeywell (HON - Free Report) closed at $137.33 in the latest trading session, marking a -0.3% move from the prior day. This move lagged the S&P 500's daily loss of 0.02%. Elsewhere, the Dow lost 0.03%, while the tech-heavy Nasdaq lost 0.21%.
Coming into today, shares of the industrial conglomerate had lost 0.77% in the past month. In that same time, the Conglomerates sector gained 2.25%, while the S&P 500 lost 1.4%.
HON will be looking to display strength as it nears its next earnings release, which is expected to be February 1, 2019. On that day, HON is projected to report earnings of $1.89 per share, which would represent year-over-year growth of 2.16%. Meanwhile, our latest consensus estimate is calling for revenue of $9.69 billion, down 10.63% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for HON. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.01% lower. HON is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note HON's current valuation metrics, including its Forward P/E ratio of 17.33. This represents a premium compared to its industry's average Forward P/E of 14.32.
We can also see that HON currently has a PEG ratio of 1.81. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. HON's industry had an average PEG ratio of 1.66 as of yesterday's close.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 112, putting it in the top 44% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.