Honeywell International Inc. (HON) Dips More Than Broader Markets: What You Should Know
Honeywell International Inc. (HON) closed the most recent trading day at $192.34, moving -1.38% from the previous trading session. This change lagged the S&P 500's 1.23% loss on the day. Meanwhile, the Dow lost 1.29%, and the Nasdaq, a tech-heavy index, lost 0.34%.
Coming into today, shares of the company had gained 6.83% in the past month. In that same time, the Conglomerates sector gained 6.01%, while the S&P 500 gained 5.04%.
Wall Street will be looking for positivity from Honeywell International Inc. as it approaches its next earnings report date. In that report, analysts expect Honeywell International Inc. to post earnings of $1.88 per share. This would mark a year-over-year decline of 2.08%. Meanwhile, our latest consensus estimate is calling for revenue of $8.41 billion, down 0.48% from the prior-year quarter.
HON's full-year Zacks Consensus Estimates are calling for earnings of $8.59 per share and revenue of $36.17 billion. These results would represent year-over-year changes of +6.58% and +5.18%, respectively.
Any recent changes to analyst estimates for Honeywell International Inc. should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.15% lower. Honeywell International Inc. is currently a Zacks Rank #3 (Hold).
In terms of valuation, Honeywell International Inc. is currently trading at a Forward P/E ratio of 22.72. For comparison, its industry has an average Forward P/E of 17.79, which means Honeywell International Inc. is trading at a premium to the group.
Meanwhile, HON's PEG ratio is currently 2.35. 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 1.46 as of yesterday's close.
The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 79, which puts it in the top 32% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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