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Honeywell International Inc. (HON) Gains But Lags Market: What You Should Know

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Honeywell International Inc. (HON) closed the most recent trading day at $180.51, moving +0.45% from the previous trading session. The stock lagged the S&P 500's daily gain of 2.45%. Meanwhile, the Dow gained 2.15%, and the Nasdaq, a tech-heavy index, added 0.4%.

Heading into today, shares of the company had lost 5.21% over the past month, outpacing the Conglomerates sector's loss of 7.01% and the S&P 500's loss of 5.71% in that time.

Investors will be hoping for strength from Honeywell International Inc. as it approaches its next earnings release. The company is expected to report EPS of $2.03, up 0.5% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $8.72 billion, down 0.96% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.68 per share and revenue of $35.95 billion. These totals would mark changes of +7.69% and +4.54%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Honeywell International Inc.Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 0.17% lower within the past month. Honeywell International Inc. is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Honeywell International Inc. is holding a Forward P/E ratio of 20.71. For comparison, its industry has an average Forward P/E of 14.67, which means Honeywell International Inc. is trading at a premium to the group.

Meanwhile, HON's PEG ratio is currently 2.15. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. HON's industry had an average PEG ratio of 1.21 as of yesterday's close.

The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 60, which puts it in the top 24% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.


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