Honeywell International Inc. (HON) closed at $189.09 in the latest trading session, marking a +1.88% move from the prior day. This change outpaced the S&P 500's 1.83% gain on the day. Meanwhile, the Dow gained 1.4%, and the Nasdaq, a tech-heavy index, added 0.09%.
Coming into today, shares of the company had lost 4.37% in the past month. In that same time, the Conglomerates sector lost 6.83%, while the S&P 500 lost 5.51%.
Investors will be hoping for strength from Honeywell International Inc. as it approaches its next earnings release. In that report, analysts expect Honeywell International Inc. to post earnings of $2.16 per share. This would mark year-over-year growth of 6.93%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.09 billion, up 7.3% 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Honeywell International Inc. is currently a Zacks Rank #3 (Hold).
Digging into valuation, Honeywell International Inc. currently has a Forward P/E ratio of 21.39. This valuation marks a premium compared to its industry's average Forward P/E of 16.21.
Also, we should mention that HON has a PEG ratio of 2.24. 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 was holding an average PEG ratio of 1.55 at yesterday's closing price.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 59, putting it in the top 24% 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.
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