Honeywell International Inc. (HON) Gains As Market Dips: What You Should Know
Honeywell International Inc. (HON) closed at $177.35 in the latest trading session, marking a +0.28% move from the prior day. This change outpaced the S&P 500's 0.72% loss on the day. Elsewhere, the Dow lost 0.45%, while the tech-heavy Nasdaq lost 0.27%.
Heading into today, shares of the company had lost 13.19% over the past month, lagging the Conglomerates sector's loss of 11.08% and the S&P 500's loss of 9.06% in that time.
Investors will be hoping for strength from Honeywell International Inc. as it approaches its next earnings release. The company is expected to report EPS of $2.16, up 6.93% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.06 billion, up 6.93% from the year-ago period.
HON's full-year Zacks Consensus Estimates are calling for earnings of $8.68 per share and revenue of $35.81 billion. These results would represent year-over-year changes of +7.69% and +4.13%, respectively.
It is also important to note the recent changes to analyst estimates for Honeywell International Inc.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.
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 remained stagnant within the past month. Honeywell International Inc. is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Honeywell International Inc.'s current valuation metrics, including its Forward P/E ratio of 20.38. Its industry sports an average Forward P/E of 15.38, so we one might conclude that Honeywell International Inc. is trading at a premium comparatively.
We can also see that HON currently has a PEG ratio of 2.13. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. HON's industry had an average PEG ratio of 1.59 as of yesterday's close.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 93, putting it in the top 37% 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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