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.
Currently 5.7% under their all time high. Not exactly the worst place to perhaps quicken some buy backs. They are trading at a low forward multiple so I'm not sure how much more downside they have versus touching their 200 moving averages in the $88 range. Even their 365 day average is roughly $80. $80's would be better than $90's for buybacks, but that is presuming it will trade low into that range. I would begin buying them back now and use at least 50% of the year allotment for buybacks in the upper $80's. If it falls lower, they can use the other half, otherwise, they would dollar cost average down their overall buys for the year.
I doubt we go too far under $60, if we breach at all. Low $60s for the moving averages is quite within reach. Not sure we test the $50's moving average though. Possible, but not probable---- yet. Would need some bad news about earnings or demand or a huge number of new pipeline announcements to drive it that much lower.
My primary concern going forward (multi-year horizon) is how well the company will fare after the eventual retirement of Cote. He transformed the company after the failed GE merger, turning HON into a compounding marvel. I just hope there is enough similar talent and mindset throughout the rest of the chain of command to keep this going for next few decades (I want to retire with HON stock-- currently closing on 28).
Yep, got a turbo on mine. Not sure if mine is from Honeywell or BorgWarner though- quite possibly Borg since they supply a lot of components for VW diesel's (what helps us get 50+mph highway without too much trouble).
Honeywell has some core products that weather global economy turbulence pretty well. Refining and petrochemicals, turbochargers, simplification/automation systems. All of these will benefit with minimal global GDP expansion and notably in the face of inflation and population growth. The latter will put upward pressure on input costs, pushing businesses to look for solutions that will help mitigate operating expenses. That is where Honeywell steps in, providing cost reduction solutions and products/technology that increase performance and efficiency.
Their taxi system for jets is a new case along these lines. Airlines not only have money to spend at the moment but are looking for ways to further reduce fuel expenses. Whether that comes through newer engines and aero designs, or from these new taxi solutions, they will benefit.
Add the 50 moving averages. The link won't post if I include them. The 50 day is right above $1.80. Not nonesense. Tech analysis.
I have a long position back on as well. Started back in for my spec position. Things are moving in the right direction for the company, but the stock got way ahead of itself. I love seeing +10% days but if it isn't warranted, it is only borrowing from the future of the stock.
Trade the moves and benefit from the froth when possible. Mr. Market gave everyone a great deal at $2.60 to get out, and a better deal at $2 and below (now) to start moving back into the name.