|Bid||0.00 x 900|
|Ask||0.00 x 800|
|Day's Range||143.88 - 145.40|
|52 Week Range||131.42 - 165.13|
|PE Ratio (TTM)||62.66|
|Forward Dividend & Yield||2.98 (2.07%)|
|1y Target Est||N/A|
(Note:The author of this fundamental analysis is a financial writer and portfolio manager.) Industrial stocks are having a tough 2018. The Industrial Select Sector SPDR ETF ( XLI) is drastically trailing the broader market, falling more than 3% this year, and it's still down nearly 9% off its highs.
Honeywell's (HON) survey report suggests higher demand for connected technologies in the commercial aviation industry. Heavy investments are predicted in the next five years.
The goal for connected aircraft technology is to enhance the passenger experience, save airlines money and improve operational efficiency.
Honeywell (HON) continued its progress on its earlier announced spin-offs. The spin-off could add more value to investors, as it will be an independent company. During that time, Cliff Garrett, an entrepreneur and an engineer, led the team to develop a turbocharger for the Caterpillar (CAT) D9 crawler tractor, which was launched in 1954.
As of June 14, Honeywell (HON) stock had fallen 1.4% this year, underperforming the S&P 500 (SPY), which had gained 4.1%. Peers General Electric (GE), 3M (MMM), and United Technologies (UTX) also underperformed the index, falling 21.8%, 13.5%, and 0.5%, respectively.
Previously, we saw analysts’ recommendations for Honeywell (HON). As of May 31, Honeywell’s short interest had increased by five basis points sequentially, from 0.92% to 0.97%, while its stock price had risen from $147.35 to $147.91. The increase in HON’s short interest reflects a negligible rise in bearishness toward the stock. However, its short interest as a percentage of outstanding shares is still under 1%, and it was 1.3% at the beginning of this year, indicating bearishness toward the stock has declined in that time.
“This is not the right approach,” said Tom Donohue, Chamber of Commerce president. “Risking a potential trade war is the wrong way to fix these problems,” the roundtable warned, even as it said it shared the administration’s concerns about China’s “discriminatory trade practices”.
Honeywell’s (HON) debt, which has been rising for the past five years, doubled between 2013 and 2017. At the end of Q1 2018, HON’s debt stood at $18.3 billion. Debt here includes long-term debt and maturities, and commercial papers and other short-term borrowings.
In the past five years, Honeywell’s (HON) FCF (free cash flow) has grown significantly. HON’s business growth, backed by its aerospace and UOP1 businesses and strong backlog, has enabled HON to generate higher FCF. HON’s FCF grew from $3.4 billion in 2013 to $4.9 billion in 2017.
Honeywell appears to be gearing up for more deals. The Morris Plains, N.J.-based industrial conglomerate sees significant opportunity to shift more of its portfolio into software and is "not backing down" from its target of 20% growth in the software business, Dallara said. When asked if there was an acquisitive element to this growth strategy, Dallara responded, "Absolutely ... we like bolt-ons," echoing Chief Executive Officer Darius Adamczyk's earlier statements about M&A.
On Wednesday the Federal Reserve cranked up the nation’s interest rates, as was widely expected. Namely, the Fed rate hike of a quarter of a point pushed the target for its benchmark up to a range between 1.75% and 2.0%, marking the seventh such increase since the global economy came out of the 2008 sub-prime-prodded meltdown. The addition of “sustained expansion” to the narrative hinted at the FOMC’s positive view of the economy, but the removal of the statement “for some time” when describing how long the Fed would accommodate it was interpreted as hawkishness.
A deeper decline could unfold in the next few weeks with prices testing the $140 area or lower." Looking over a chart today we can see that in April and May HON tested the $140 area. In this daily bar chart of HON, below, we can see that after two tests of the $140 level HON has firmed up above the rising 200-day moving average line and the now rising 50-day line. Many technical analysts consider the golden cross a late but a bullish signal that can be successful in trending markets.
Honeywell (HON) introduces Honeywell Vector Space Sense that allows building operations team to take better-informed decisions on real estate and space usage.
On Friday, General Electric Company (NYSE:GE) declared a 12 cent per share quarterly dividend. Long-time holders likely think back to last year, when GE stock was paying out twice that amount. In November, General Electric cut its annual dividend from 96 cents per share to just 48 cents per share.
Dave Cote, who bought 100 companies and sold 70 while running Honeywell International Inc., says he knows what it takes to find the right acquisition. Now Goldman Sachs Group Inc. is tapping Cote’s experience from a decade and a half as Honeywell’s chief executive officer for a new partnership aimed at cobbling together an industrial operation from scratch. The special acquisition company raised about $600 million in a June 8 initial public offering, and Cote is eyeing deals that will probably range from $1 billion to as much as $5 billion.
The latest move is a small one relative to the total revenue at stake, but it continues an increasingly dangerous cat-and-mouse game between the company and its suppliers. Investors beware.
Quarterly company forecasts will happen with or without Buffett and Dimon, says former Honeywell CEO Larry Bossidy.
Dozens of major American companies are preparing to pull out of Iran as the Trump administration closes a narrow legal window that has allowed firms to operate there without violating U.S. sanctions. The companies using the exemption include big conglomerates like Honeywell International Inc., Dover Corp. and General Electric Co. and insurers like Chubb Ltd., many of which sought to profit from growth in the Iranian energy industry. Some of the companies have already booked millions of dollars in revenue from their Iranian business, underscoring the high commercial stakes of the Trump administration’s decision to revive economy-crippling sanctions against Iran.
Optimism over “synchronized” global economic growth around the world abounded in the early months of this year, but already signs of slowdown could be seen in global purchasing mangers’ indexes (PMI). Since 1990, every period in which the global economy attained synchronized economic growth it was soon followed by some sort of economic surprise, according to HSBC Holdings, as reported by Bloomberg. While the U.S.’s own manufacturing index ticked upward last month, showing signs of strength, possibilities for economic surprises appear to be rising, whether they be from Italian political tensions in the eurozone, controversies over sanctions on Iran or even U.S. tariffs that could ignite a global trade war.
Honeywell's (HON) new security management solution, which is based on its ICS Shield, will provide industrial customers with cybersecurity.
With more than 100 languages and the ambition to connect even its smallest villages by air, India has become a testing ground for a new software being developed by Honeywell International Inc. that aims to make it easier to understand pilots speaking English with strong local accents. The conglomerate is, at the behest of the government, developing software that will decipher accents and automatically transcribe what’s said for air traffic controllers. “One of the biggest problems in India has been that we Indians don’t understand each other’s English because of the dialects,” Neelu Khatri, president of Honeywell’s aerospace business in the South Asian nation, said in an interview in New Delhi.
United Technologies' (UTX) operating unit, Pratt & Whitney secures a $2-billion contract for reduction of the propulsion system price.