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Honeywell (HON) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

Honeywell (HON) closed the most recent trading day at $177.14, moving +1.49% from the previous trading session. This change outpaced the S&P 500's 0.46% gain on the day. At the same time, the Dow added 0.9%, and the tech-heavy Nasdaq gained 0.59%.

Coming into today, shares of the industrial conglomerate had gained 0.78% in the past month. In that same time, the Conglomerates sector gained 2.31%, while the S&P 500 gained 4.04%.

Investors will be hoping for strength from HON as it approaches its next earnings release, which is expected to be July 18, 2019. In that report, analysts expect HON to post earnings of $2.08 per share. This would mark a year-over-year decline of 1.89%. Our most recent consensus estimate is calling for quarterly revenue of $9.36 billion, down 14.24% from the year-ago period.

HON's full-year Zacks Consensus Estimates are calling for earnings of $8.10 per share and revenue of $37.18 billion. These results would represent year-over-year changes of +1.12% and -11.05%, respectively.

Any recent changes to analyst estimates for HON should also be noted by investors. These revisions help to show the ever-changing nature of 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.08% higher within the past month. HON is currently sporting a Zacks Rank of #2 (Buy).

Looking at its valuation, HON is holding a Forward P/E ratio of 21.54. For comparison, its industry has an average Forward P/E of 16.59, which means HON is trading at a premium to the group.

Meanwhile, HON's PEG ratio is currently 2.33. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Diversified Operations industry currently had an average PEG ratio of 1.87 as of yesterday's close.

The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 35, which puts it in the top 14% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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