It could be a "guilty by association" penalty on them because of their inclusion in industrial ETF's like the XLI. The likes of GE, CAT, BA, and UTX are suppressing the performance of those ETF's which thus brings downward pressure on HON. They can escape this, of course, with heavy buying of HON stock by institutions. This is currently unlikely due to the stretched technical indicators showing the stock to be overbought.
Several factors running here. Brent/WTI spread cutting into US refineries-- will they still run at high utilization rate thus increasing their demand for UOP catalysts and services. Will aerospace keep humming along moving forward allowing for HON to maintain and grow sales in that segment?
Some variables and questions out there that could be removing some bulls from the stock. Otherwise, buy JAN '16 calls and sit back and watch over the next 18 months.
The stretched PE is the issue. It's out side of the industry norm. It's been this way for quite some time now though. The good earnings report seems to already be baked into the share price. I'd love to be wrong and you right though. $106 by year end with a dividend raise would be awesome.
Honeywell posted a very good quarter with several excellent analyst reports now out. The average price target is around 107 with a range of 101 to 121. Most are estimating full year earnings at 5.55 to 5.60 that should put the stock at around 106 with current P/E at year-end. I also thought that once the positive analyst reports were out, the stock would advance some more. I think what's happening is some carry-over from other industrials that fell short on revenue even though HON did OK. Need the overall markets to hold up and HON should "catch-up".
Expect one more dividend at ,45 for August. Dividend 10% increase likely will be announced for November dividend.
A 10% dividend increase at ,25 for 2X shares would have Upright dancing in the streets!
Maintaining current P/E of 19.4 at full year earnings forecast of 5.50 = potential Price of 106.7.
Should be able to break 100 if general market conditions remain positive. Have to get through the Fed ending bond purchases and fear of rate increases in 2015.
Look at Cote's salary compared to the CEOs of the companies you mentioned. Perhaps the stock price is inversely proportional to CEO salary.
CSTU is the stock to watch. Financials show some huge assets along with proven mining properties. You need to start some research on CSTU, could be the next mining play to really make investors rich
Upright - I agree with there being a psychological impact of a stock split. However, to say that HON can't get over 100 without a split is not practical. There are many stocks trading over 100 today. How did they break the 100 barrier? In HON sector, stocks like UTX, PH, NOC, BA and several others all made it over the 100 mark. The impact of a split is very short-term and the main drivers of stock price remain revenue, earnings, op-margin, and cash-flow.
At the high end of the new Honeywell five year plan, the stock could easily be well over $200.
I wish I could outlive the money. Rex has the right idea, cash-out and spend it!!
Every large institution that wants to own Honeywell already has it in their portfolio. The only people left are the smaller investors. Young investors won't pay $96/share but they will buy at $40/share. I'll bet you that you didn't buy your shares $96/share. Also, I'll bet you've seen a stock split or two and have, over time, compounded your wealth because of it. I know I have. Honeywell is ripe for a 2 for 1 stock split. Then you will see it move to $60,$70/share and more over time. Without a split it will never reach $100.
Well Honeywell is recovering but Yellen killed my small caps and tech stocks this morning with her comments.
Could hit new all-time high this week with earnings on Friday.
Hope no bad words come out of Yellen's mouth at the congressional testimony Tuesday/Wednesday.
Just saying - augie