Has Marcus (MCS) Outpaced Other Consumer Discretionary Stocks This Year?
Honeywell International Inc. HON recently announced the availability of Aspire 40, its newest satellite communications system. Apart from offering critical cockpit safety services to pilots, the system provides passengers and aircraft flight crews with an access to global voice and data connectivity. Also, it ensures safer and more efficient flights for business jets, commercial and military aircraft by offering a simultaneous connectivity to both the cockpit and the cabin.
Notably, the Aspire 400 satellite communication system is lightweight and takes into account the operator's choice of either a high-gain antenna or an intermediate-gain. Additionally, it encompasses of a satellite data unit, a high-power amplifier, a configuration module as well as a low noise amplifier. With the help of two independent SwiftBroadband channels and Inmarsat's I-4 network, the system offers connectivity to pilots as well as passengers.
The Inmarsat's SwiftBroadband–Safety service strengthens communications safety in the cockpit by providing a separate and secure data channel such as text messaging with air traffic control or in-flight tracking and electronic flight bag applications. Moreover, it presents opportunity for the passengers to utilize the second channel for SwiftBroadband voice and data connectivity in the cabin.
Honeywell is well-positioned to gain from long-term expansion in markets like aerospace, facility automation and automotive turbochargers backed by its strong market share and product line-up. The company also continues to invest in innovative technologies that are expected to help it maintain its leadership position. Also, as emerging markets expand the demand for the company’s, airplanes, automobiles and construction products is expected to grow.
In the past year, shares of this Zacks Rank #3 (Hold) company have outperformed the industry. While the stock has gained 14.7%, the industry declined 16.4%. Further, the company’s balanced mix of long- and short-cycle businesses along with a decent organic growth in new products and expansion in high-growth regions auger well on a long-term perspective.
However, the company is yet to witness signs of stabilization in a number of its major end markets despite its proactive restructuring initiatives. Moreover, in order to differentiate its products and prevent commoditization, Honeywell has to continually develop and maintain competitive products by adding innovative features. These, in turn, might lead to high R&D expenditures, often resulting in margin contraction.
Some better-ranked stocks from the same space are Federal Signal Corporation FSS, Leucadia National Corporation LUK and Raven Industries, Inc. RAVN. While Federal Signal and Leucadia National sport a Zacks Rank #1 (Strong Buy), Raven Industries carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Federal Signal surpassed estimates in the trailing four quarters, with an average positive earnings surprise of 16.5%.
Leucadia National surpassed estimates thrice in the trailing four quarters, with an average positive earnings surprise of 6.6%.
Raven Industries outpaced estimates thrice in the preceding four quarters, with an average earnings surprise of 20.2%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Honeywell International Inc. (HON) : Free Stock Analysis Report
Leucadia National Corporation (LUK) : Free Stock Analysis Report
Raven Industries, Inc. (RAVN) : Free Stock Analysis Report
Federal Signal Corporation (FSS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research