Honeywell (HON) closed at $164.37 in the latest trading session, marking a -0.54% move from the prior day. This move was narrower than the S&P 500's daily loss of 0.69%. At the same time, the Dow lost 0.87%, and the tech-heavy Nasdaq lost 0.79%.
Heading into today, shares of the industrial conglomerate had lost 4.82% over the past month, outpacing the Conglomerates sector's loss of 5.79% and lagging the S&P 500's loss of 4.53% in that time.
HON will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.08, down 1.89% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.36 billion, down 14.28% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.11 per share and revenue of $37.17 billion, which would represent changes of +1.25% and -11.08%, respectively, from the prior year.
Any recent changes to analyst estimates for HON should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.05% higher within the past month. HON is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that HON has a Forward P/E ratio of 20.38 right now. This represents a premium compared to its industry's average Forward P/E of 15.81.
Investors should also note that HON has a PEG ratio of 2.2 right now. 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 1.78 as of yesterday's close.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 75, putting it in the top 30% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Honeywell International Inc. (HON) : Free Stock Analysis Report
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