Honeywell International Inc. (HON - Free Report) recently announced that its business unit, Honeywell Process Solutions (“HPS”), has been chosen by Kuwait Integrated Petroleum Industries Company (“KIPIC”) as the main automation contractor in Kuwait. KIPIC will be using HPS’s front-end engineering design and advanced process control technology for its Petrochemicals and Refinery Integration Al Zour Project (PRIZe) to reach production targets quickly and more effectively.
The project will help to considerably increase the domestic manufacturing capabilities of petrochemicals, aromatics and gasoline in Kuwait. As a matter of fact, when completed, the PRIZe project will be Kuwait’s first integrated refining and petrochemicals complex that will enable KIPIC to cater to the increasing requirements of fuels and petrochemical products in the country.
In addition, the company’s business unit, Honeywell UOP, received a deal from KIPIC to update the Al Zour complex. Notably, Honeywell UOP will be responsible for revising the configuration and capacity of the complex’s gasoline production facilities, key equipment, and catalysts and adsorbents, among others.
Honeywell is experiencing strength in its long-cycle businesses in U.S. defense, warehouse automation, process solutions and building technologies, as well as robust demand for aftermarket service business. Strength in the company’s process solutions business driven by solid automation portfolio coupled with strong demand for equipment is likely to keep boosting revenues of its Performance Materials and Technology segment.
However, weakness in the Safety and Productivity Solutions segment on account of lower volumes of sales due to softness in its productivity products business, distributor destocking and fewer large project rollouts remains a concern.
Year to date, the Zacks Rank #3 (Hold) company’s shares have gained 37.7% compared with the industry’s rally of 26.8%.
Some better-ranked stocks from the same space are Carlisle Companies Incorporated (CSL - Free Report) , ITT Inc. (ITT - Free Report) and Macquarie Infrastructure Company (MIC - Free Report) . All these companies carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Carlisle surpassed estimates in each of the preceding four quarters, the average positive earnings surprise being 18.58%.
ITT outpaced estimates in each of the preceding four quarters, the average positive earnings surprise being 7.85%.
Macquarie outpaced estimates twice in the preceding four quarters, the average positive earnings surprise being 5.34%.
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