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

·3-min read

Honeywell International Inc. (HON) closed at $191.11 in the latest trading session, marking a +1.05% move from the prior day. This move lagged the S&P 500's daily gain of 1.44%. Elsewhere, the Dow gained 1.26%, while the tech-heavy Nasdaq added 5.21%.

Coming into today, shares of the company had lost 2.74% in the past month. In that same time, the Conglomerates sector gained 0.95%, while the S&P 500 gained 2.28%.

Wall Street will be looking for positivity from Honeywell International Inc. as it approaches its next earnings report date. The company is expected to report EPS of $1.92, up 0.52% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $8.49 billion, up 1.4% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $9.03 per share and revenue of $36.63 billion, which would represent changes of +3.08% and +3.28%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Honeywell International Inc.Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.02% lower. Honeywell International Inc. is currently a Zacks Rank #3 (Hold).

Investors should also note Honeywell International Inc.'s current valuation metrics, including its Forward P/E ratio of 20.94. For comparison, its industry has an average Forward P/E of 17.46, which means Honeywell International Inc. is trading at a premium to the group.

Also, we should mention that HON has a PEG ratio of 2.35. 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 1.47 as of yesterday's close.

The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 86, putting it in the top 35% 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.

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