In the latest trading session, Honeywell (HON - Free Report) closed at $154.03, marking a +0.54% move from the previous day. This change outpaced the S&P 500's 0.12% gain on the day. Elsewhere, the Dow gained 0.23%, while the tech-heavy Nasdaq added 0.36%.
Coming into today, shares of the industrial conglomerate had gained 8.51% in the past month. In that same time, the Conglomerates sector gained 11.45%, while the S&P 500 gained 6.17%.
Investors will be hoping for strength from HON as it approaches its next earnings release. The company is expected to report EPS of $1.83, down 6.15% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.63 billion, down 16.98% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.96 per share and revenue of $36.83 billion, which would represent changes of -0.62% and -11.9%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for HON. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection has moved 0.17% higher. HON currently has a Zacks Rank of #3 (Hold).
Digging into valuation, HON currently has a Forward P/E ratio of 19.24. This represents a premium compared to its industry's average Forward P/E of 16.53.
Also, we should mention that HON has a PEG ratio of 2.15. 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 1.93 as of yesterday's close.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 46, putting it in the top 19% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow HON in the coming trading sessions, be sure to utilize Zacks.com.