HON - Honeywell International Inc.
| Previous Close | 150.52 |
| Open | 152.00 |
| Bid | 153.01 x 800 |
| Ask | 153.69 x 800 |
| Day's Range | 151.59 - 153.32 |
| 52 Week Range | 123.48 - 162.52 |
| Volume | 3,039,428 |
| Avg. Volume | 3,244,263 |
| Market Cap | 111.783B |
| Beta (3Y Monthly) | 1.25 |
| PE Ratio (TTM) | 17.07 |
| EPS (TTM) | 8.98 |
| Earnings Date | Apr 18, 2019 - Apr 22, 2019 |
| Forward Dividend & Yield | 3.28 (2.18%) |
| Ex-Dividend Date | 2019-02-21 |
| 1y Target Est | 165.05 |
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9 Super-Safe-Growth Stocks for Long-Lasting Dividends
[Editor's note: This story was previously published in December 2017. It has since been updated and republished.]When the stock market marches higher, it pushes the prices of many companies higher along with it. But as investors bid up good and bad businesses alike, that can make it hard to discern which companies are the best dividend stocks for long-term investors. That's especially true in the world of dividends.In this income-centric world, income-starved investors face great temptation to reach for high-dividend stocks that offer juicy yields. Fortunately, Simply Safe Dividends identified the nine best dividend growth stocks that investors can rely on for secure, fast-growing income.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThese companies all have very healthy Dividend Safety Scores, which measure a firm's most important financial metrics to gauge how likely it is to cut its dividend in the future. * 9 U.S. Stocks That Are Coming to Life Again Let's take a look at nine of the safest dividend stocks in the market. These dividend-paying companies generate excellent free cash flow, maintain safe payout ratios, are committed to rewarding shareholders with healthy dividend increases and have bright long-term outlooks.Source: Mike Mozart via Flickr (modified) Dividend Stocks: Lowe's Companies, Inc. (LOW)Dividend Yield: 1.9% 5-Year Annual Dividend Growth Rate: 33.3% Year-to-Date Gain: -9.67%Lowe's Companies, Inc. (NYSE:LOW) is the world's second-largest home improvement retailer.With more than 65 years of existence, this dividend stock has gained recognition as one of the trusted national brands. Over the years, Lowe's has developed an extensive line of thousands of products for maintenance, repair, remodeling and decorating across lumber and building materials, tools and hardware, lawn and garden, paint, kitchens, outdoor power equipment and home fashion categories.The company serves a wide spectrum of "do-it-yourself" and "do-it-for-me" customers, including homeowners, renters and professional contractors from different construction trades.A large footprint of conveniently located stores across the U.S., an extensive range of products, a well-known brand and a diversified customer base are Lowe's key competitive advantages.The home improvement industry is also poised to grow as consumer confidence remains high, employment continues rising and home prices climb higher. This should lead to better growth prospects for the company and its dividend.Lowe's has an impeccable record of not only paying but also increasing its dividend since 1961, growing it by over 20% annually in the last five years. It last raised its dividend payout by an impressive 15%.Lowe's forward price-earnings (P/E) ratio of 16.8 is below the market's and seems reasonable for a company of this quality.Source: Becky Wetherington via Flickr (modified) Dividend Stocks: Honeywell International Inc. (HON)Dividend Yield: 2.17% 5-Year Annual Dividend Growth Rate: 11.5% YTD Gain: 14.75%Honeywell International Inc. (NYSE:HON) is a diversified global technology and manufacturing company supplying industrial products, software and services to a diversified set of customers.Honeywell operates through four segments: aerospace; home and building technologies; performance materials and technologies and safety and productivity solutions .The company serves customers through a wide variety of products and services in aerospace, control, sensing and security. It also sells specialty chemicals and advanced materials as well as energy efficiency products.Simply put, Honeywell has invented key technologies that address some of the world's most critical challenges around energy, safety, security, productivity and urbanization. With a broad portfolio of physical products and software, the company has uniquely positioned itself to sell comprehensive solutions for homes and businesses across many industries.A broad portfolio of technology, extensive products and services, a global distribution network, and a presence in growing areas like the Internet of Things and energy efficiency are Honeywell's key strengths.A track record of strong financial performance and a healthy payout ratio have enabled the company to grow its dividend by 11.5% per year over the last five years. Honeywell has paid uninterrupted dividends for more than two decades. * 9 U.S. Stocks That Are Coming to Life Again The company's earnings per share are expected to rise nearly 10% this year. It should, therefore, continue its impressive dividend growth streak with high-single to low-double-digit annual payout growth in the future as well.Source: Shutterstock Dividend Stocks: Apple Inc. (AAPL)Dividend Yield: 1.7% 3-Year Annual Dividend Growth Rate: 13.5% YTD Gain: 8.36%Apple Inc. (NASDAQ:AAPL) is one of the world's most valuable companies and one of the largest positions in Warren Buffett's dividend stock portfolio.Apple is the world's second-largest smartphone company, accounting for more than 10% of the global market share. The iPhone, iPad, Mac, Apple Watch and Apple TV are Apple's key products, with the iPhone representing over the majority of its 2018 sales. These products are globally recognized for their high quality, premium brand and ease-of-use, allowing Apple to enjoy substantial pricing power.In addition, the company also owns a portfolio of consumer and professional software such as iOS, macOS, watchOS and tvOS operating systems that act as key differentiators. Apple's products and solutions are known for their innovative design, user-friendly experience and seamless integration. All these innovative products have established Apple's supremacy in the mobile space, and the company invests around 5% of its revenues on R&D activities to stay ahead of competitors.Moreover, only Apple devices run iOS, which means that if customers want to remain within the Apple ecosystem, they must continue buying iOS devices. This results in sticky customer relationships. Its sales of games, music and other digital content through the iTunes store is another high-margin cash flow stream that keeps growing every year.A leading brand name, global geographical presence, impressive product portfolio and super-sticky customer relationships have helped form a huge moat around Apple's business.Apple started paying dividends again in 2012 and it has seen its payout grow by approximately 13.5% annually over the last three years. It last raised its payout by 16%.Given Apple's leading market share, loyal customers, innovative products and hoard of cash on the balance sheet, the company should continue raising its dividend at a strong pace in the future as well.Source: U.S. Embassy Kyiv Ukraine via Flickr (Modified) Dividend Stocks: Medtronic, Inc. (MDT)Dividend Yield: 2.21% 5-Year Annual Dividend Growth Rate: 15.7% YTD Gain: 9.29%Medtronic plc. Ordinary Shares (NYSE:MDT) is a leading medical technology, services and solutions company serving hospitals, physicians, clinicians and patients worldwide. It owns a portfolio of medical products, therapies and procedures for a wide range of medical disciplines.Medtronic's operating segments are classified into cardiac and vascular, minimally invasive therapies, restorative therapies and diabetes groups. The U.S. is Medtronic's largest market, followed by Western Europe, Japan and emerging markets.With nearly seven decades of existence, Medtronic has developed a strong reputation globally and claims to improve the lives of two people every second. Some of Medtronic's key innovations include the world's smallest pacemaker and artificial pancreas.As a leader in medical technology and solutions, Medtronic stands to benefit from growing healthcare needs as the global population ages. The business also benefits from meaningful barriers to entry created by various regulations from the U.S. Food and Drug Administration and other government agencies.Thanks to its product innovation and conservative management, the company has increased its dividend for 40 years in a row and last raised its dividend by 8.7% in 2018. * 9 U.S. Stocks That Are Coming to Life Again Given the company's technology leadership and unmatched breadth and scale, Medtronic should be able to continue its dividend growth streak at a high-single-digit rate going forward. Investors can learn more about Medtronic's competitive advantages and business profile here.Source: Shutterstock Texas Instruments Incorporated (TXN)Dividend Yield: 2.86% 3-Year Annual Dividend Growth Rate: 34.2% YTD Gain: 14%Texas Instruments Incorporated (NASDAQ:TXN) is one of the largest designers and sellers of semiconductors globally. It develops analog integrated circuits and embedded processors that are subsequently sold to electronics manufacturers. The company's product portfolio consists of tens of thousands of products that are used to accomplish many different things, such as converting and amplifying signals, interfacing with other devices and managing and distributing power.Texas Instruments' focus on these segments provides a combination of stability and strong cash generation, owing to the products' long product life cycles and low capital-intensive manufacturing.Leading industry products, a diverse portfolio, unique technologies and manufacturing scale and a strong reputation enable Texas Instruments to generate stable and recurring cash flows.As a result, Texas Instruments has paid uninterrupted dividends since 1962 and it has recorded an impressive annual dividend growth rate of approximately 34.2% over the last three years.2018 marked the company's 14th consecutive year of dividend increases, wherein Texas Instruments raised its dividend by nearly 25%.Given its predictable cash flow generation, impressive dividend track record and reasonable payout ratio,, the company should be able to continue rewarding shareholders with double-digit dividend growth in the years ahead.Source: Shutterstock Costco Wholesale Corporation (COST)Dividend Yield: 1.07% 5-Year Annual Dividend Growth Rate: 13.5% YTD Gain: 4.53%Costco Wholesale Corporation (NASDAQ:COST) is a membership warehouse club with more than 500 U.S. store locations that provide merchandise at low prices to its members. Costco sells a wide range of products, including packaged foods, groceries, appliances, cleaning supplies, clothing and electronics.The company is the world's second-largest retailer by sales and it generates the majority of its sales in North America. Costco's membership base is growing with a renewal rate of over 90% as of its December 2018 quarter.Over its 35 years of existence, Costco has succeeded in providing a great customer experience by blending together the convenience of specialty departments and a selection of wide merchandise at affordable prices. It has become a trusted name owing to its low cost and quality merchandise.The company buys directly from many producers of national brand-name merchandise and sends products directly to its warehouses, eliminating multi-step distribution costs. High sales volumes, rapid inventory turnover, efficient distribution and self-service warehouse facilities also ensure high operational efficiency.A large and loyal customer base, economies of scale, a diverse mix of merchandise, and strategically-located warehouses are Costco's major competitive advantages.Costco has increased its dividend at 13.5% per-year over the last five years and last raised its payout by 11%. It also paid a special dividend of $7-per-share in 2017. * 9 U.S. Stocks That Are Coming to Life Again Analysts expect Costco's sales growth to sit in the mid-single-digits range over the long-term, which could result in 8%-9% annual earnings growth in the coming years. Costco could, therefore, continue its solid pace of dividend growth.Source: Shutterstock American Tower Corporation (AMT)Dividend Yield: 1.94% 3-Year Annual Dividend Growth Rate: 23.8% YTD Gain: 9.34%American Tower Corp (NYSE:AMT) is a leading owner, operator and developer of multitenant communications real estate. The company was formed in 1995 as a unit of American Radio Systems and it was spun off in 1998 when that company merged with CBS Corporation.American Tower reports its results in five segments U.S. (59% of 2016 sales), Asia (14%), EMEA (9%) and Latin America (17%) property, and services (1%). It owns a portfolio of over 170,000 communications sites.American Tower leases space on its communications sites to wireless service providers, radio and television broadcast companies, government agencies and tenants in a number of industries. Its top tenants include well-known names like AT&T Inc. (NYSE:T), Verizon Communications Inc. (NYSE:VZ), T-Mobile Us Inc (NASDAQ:TMUS) and Sprint Corp (NYSE:S).The real estate investment trust derives most of its revenue from tenant leases, which typically have an initial non-cancellable term of ten years with multiple renewal terms, as well as provisions for annual price increases. It is difficult for tenants to find suitable alternative sites and as such the lease renewal rates are generally high.Moreover, the incremental operating costs associated with adding new tenants to an existing communications site are relatively low and annual capital expenditures to maintain communications sites are also not high. All these factors provide high cash-flow visibility and excellent profitability for American Tower.American Tower should keep growing its earnings as demand for wireless services and data grows in the coming years. A global asset base, recession-proof demand for its sites, long-standing relationships with customers and low cash-flow volatility provide a moat around American Tower's business.Simply put, wireless tower companies possess many attractive qualities. That's probably why Crown Castle International (CCI), one of American Tower's peers, is a position in Bill Gates' dividend stock portfolio.Given American Tower's history of double-digit growth in property revenue and the near-tripling of its dividend in just the past five years, shareholders can likely expect at least 20% annual dividend growth in the years ahead.Source: Shutterstock Becton, Dickinson and Company (BDX)Dividend Yield: 1.25% 3-Year Annual Dividend Growth Rate: 5.55% YTD Gain: 9.2%Becton, Dickinson and Co (NYSE:BDX) is a global medical technology company engaged in the development, manufacture and sale of a broad range of medical supplies, devices, laboratory equipment and diagnostic products. The company uses independent distribution channels to distribute its products both in the U.S. and internationally.Europe, EMA, Greater Asia, Latin America and Canada are Becton Dickinson's major international markets. Becton Dickinson is also growing its presence in emerging markets.The company has major R&D facilities located in North America, China, France, India, Ireland and Singapore. BDX's customer base is also quite diverse, ranging from healthcare institutions, life science researchers and the pharmaceutical industry to clinical laboratories and the general public.Diversification across geographies, customers and products, strong R&D capabilities and a portfolio of successful brands are Becton Dickinson's key competitive advantages. With more than a century's worth of operating experience, the company is known for providing integrated products and services that seamlessly support healthcare providers across care areas. Its acquisition of C.R. Bard is also expected to create a stronger company in the future.Becton Dickinson is a dividend aristocrat with 46 years of consecutive dividend growth. It has grown its dividend at an impressive 10% compound annual growth rate over the last five years. * 9 U.S. Stocks That Are Coming to Life Again With its need to restore its balance sheet after acquiring C.R. Bard, dividend growth over the near-term will likely remain below the company's historical double-digit pace. However, with earnings expected to grow over 10% this year, it won't be long before investors are once again rewarded with strong payout growth.Source: Shutterstock Automatic Data Processing, Inc. (ADP)Dividend Yield: 2.09% 5-Year Annual Dividend Growth Rate: 13% YTD Gain: 15.2%Automatic Data Processing (NASDAQ:ADP) is a top global provider of cloud-based Human Capital Management (HCM) solutions, and a leader in business outsourcing services, analytics and compliance expertise.Automatic Data Processing's business can be categorized into two reportable segments -- Employer Services and Professional Employer Organization Services. By geography, the U.S. is its largest market, accounting for most of its revenues followed by Europe, Canada and other .Automatic Data Processing provides a host of services ranging from recruitment to talent management to retirement that help customers improve their business results and alleviate the pain from non-core, administrative tasks.The company serves over hundreds of thousands of clients ranging from small and mid-sized to large organizations operating in more than 110 countries around the world. It caters to the needs of more than 70% of the Fortune 500 companies.Automatic Data Processing is responsible for making payments to approximately one out of every six U.S. workers and nearly 13 million workers internationally. In addition, its mobile applications enable over 10 million of its clients' employees to easily access to their HR information.With six decades of experience, Automatic Data Processing has developed deep insights and cutting-edge technologies that have transformed human resources from a back-office administrative function to a strategic business advantage.A client-centric approach, long-standing customer relationships, extensive experience in payroll services and a growing demand for cloud platforms are Automatic Data Processing's biggest advantages.The company has raised its dividend for 43 years in a row,. Automatic Data Processing's earnings-per-share is expected to rise over 10% this year, which should allow dividends to continue compounding at a high-single-digit rate over the medium-term.As of this writing, Brian Bollinger was long LOW, MDT, AMT, BDX, and ADP. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 7 Best Video Game Stocks to Power Up Your Portfolio! * 7 Forever Stocks to Buy for Long-Term Gains * 5 Self-Driving Car Stocks to Buy Compare Brokers The post 9 Super-Safe-Growth Stocks for Long-Lasting Dividends appeared first on InvestorPlace.
- Barrons.com•6 days ago
Honeywell’s Pension Bought Up GE Stock and Doubled Down on Netflix
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The Zacks Analyst Blog Highlights: Raytheon, Northrop, TransDigm, Spirit and Honeywell
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Is Honeywell a Good Value Stock for 2019?
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- The Wall Street Journal•9 days ago
[$$] New Black Boxes Offer Ability to Send Real-Time Data From Plane Crashes
Honeywell International Inc. is introducing a new line of aircraft cockpit and flight-data recorders that offer more data-storage capacity and the ability, for the first time, to use satellites to retrieve accident information in real time. Honeywell officials and other proponents of the new technology said the devices, commonly called black boxes, promise major benefits for future plane crash investigations. Such options have been debated for years by aviation industry officials, and have been championed by many safety advocates and accident investigators.
- Thomson Reuters StreetEvents•9 days ago
Edited Transcript of HON earnings conference call or presentation 1-Feb-19 1:30pm GMT
Q4 2018 Honeywell International Inc Earnings Call and 2019 Outlook
- American City Business Journals•9 days ago
BREAKING: Honeywell Aerospace expands number of jobs moving to Olathe plant
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- PR Newswire•10 days ago
Honeywell Annual Shareowners Meeting Set For April 29
MORRIS PLAINS, N.J. , Feb. 8, 2019 /PRNewswire/ -- Honeywell (NYSE: HON) announced today that it will hold its 2019 Annual Shareowners Meeting on April 29, 2019 at 10:30 a.m. EDT at the company's headquarters ...
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Honeywell (HON) & Curtiss-Wright to Boost Aviation Safety
Honeywell's (HON) deal with Curtiss-Wright to develop a new generation of cockpit voice and flight-data recorders will help investigators ascertain accident cause, thereby making aviation safer.
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- Markit•10 days ago
See what the IHS Markit Score report has to say about Honeywell International Inc.
Honeywell International Inc NYSE:HONView full report here! Summary * Perception of the company's creditworthiness is neutral * ETFs holding this stock have seen outflows over the last one-month * Bearish sentiment is low Bearish sentimentShort interest | PositiveShort interest is extremely low for HON with fewer than 1% of shares on loan. This could indicate that investors who seek to profit from falling equity prices are not currently targeting HON. Money flowETF/Index ownership | NegativeETF activity is negative. Over the last one-month, outflows of investor capital in ETFs holding HON totaled $15.48 billion. Additionally, the rate of outflows appears to be accelerating. Economic sentimentPMI by IHS Markit | NeutralAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Industrials sector is rising. The rate of growth is weak relative to the trend shown over the past year, however. Credit worthinessCredit default swap | NeutralThe current level displays a neutral indicator. HON credit default swap spreads are near their highest levels of the last 3 years, which indicates the market's more negative perception of the company's credit worthiness.Please send all inquiries related to the report to score@ihsmarkit.com.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
- PR Newswire•10 days ago
Honeywell To Present At Barclays Industrial Select Conference 2019
MORRIS PLAINS, N.J. , Feb. 8, 2019 /PRNewswire/ -- Honeywell (NYSE: HON) announced that John Gugel , president of Honeywell UOP, John Rudolph , president of Honeywell Process Solutions, and Mark Macaluso ...
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Honeywell plans to cut jobs and close its Renton office
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- Market Realist•10 days ago
Honeywell Declares a Quarterly Dividend of $0.82 in Q1 2019
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- InvestorPlace•10 days ago
7 Reasons You Want Boeing Stock in Your Portfolio
Did you ever notice that sometimes it takes investors a little time to appreciate a company's performance in a given year? Take Boeing (NYSE:BA) for example. If rated on a scale of one to 10 in terms of financial and business success over the past year, it would have rated a 12. Yet, Boeing stock barely cracked a double-digit total return in 2018 -- up 11.7%, including a 2% dividend yield -- leaving some to wonder if China had pummeled the world's largest aircraft manufacturer into submission. Not by a long shot. Five weeks into 2019, Boeing stock is up 28% year to date through Feb. 5. As Matt Damon's character from Good Will Hunting would say, "How do you like them apples?"InvestorPlace - Stock Market News, Stock Advice & Trading TipsBoeing's record year shouldn't have come as a surprise to investors. I was talking about its stock as early as April, suggesting a $1,000 stock price wasn't an impossibility. Now, do I think that's going to happen in 2019? No, I do not. How about 2020? Doubt it. 2021? Doable but a bit of stretch. Buy now, and if Boeing management continue to execute at a high level and the economy doesn't collapse too severely, I would guess 2022 is the year Boeing stock hits $1,000. * 10 Monster Growth Stocks to Buy for 2019 and Beyond So, if you're thinking about buying its stock, here are seven reasons why you should. Boeing Reported Record SalesBoeing went over $100 billion in annual revenue for the first time in 2018; $101.1 billion to be exact, an 8% increase over fiscal 2017. Now, if you think 8% growth isn't a big deal, consider that works out to a $7.1 billion gain, about the same amount as the alternative asset manager Blackstone Group's (NYSE:BX) annual revenue. If Boeing's revenue growth were an S&P 500 company, it would have finished 398th in 2018. So, you might want to rethink just how good its record sales were. They were otherworldly. And that's just the top line. On the bottom line, Boeing's operating margins increased by 90 basis points in 2018 to 11.9%. For every dollar of Boeing's $101 billion in revenue, it generated nearly 12 cents in operating profits. In the fourth quarter alone, its operating margins jumped by 270 basis points to 14.7%. Expect them to keep moving higher. It Should Have a Strong Year AheadAs good as 2018 was, 2019 is expected to be even better. Last year, Boeing produced 806 aircraft, a company record. With 5,900 aircraft in its backlog, CEO Dennis Muilenburg is ramping up production. In 2019, it expects to create 895 aircraft, an 11% year-over-year increase. Amazingly, that works out to a plane getting built every ten hours -- for an entire year. That's a blistering pace by anyone's standards. Even with increased pace, it will still take Boeing close to seven years to bang out all the orders it has got. It's a nice problem to have."Our One Boeing focus, clear strategies for growth, and leading positions in large and growing markets, give us confidence for continued strong performance, revenue expansion and solid execution across all three businesses, which is reflected in our 2019 guidance," Muilenburg stated in the Q4 2018 press release. * The 9 Best Stocks to Invest In During a Manic Market Boeing expects $110.5 billion in revenue and $20.00 a share in core earnings at the midpoint for 2019 with operating margins as high as 15%, 310 basis points higher than in 2018.I'd call its outlook impressive. Wouldn't you? The Trade Dispute Is Not Slowing It DownAlthough the final quarter of 2018 was not kind to Boeing stock as fears of a protracted trade war between China and the U.S. would hurt the company's sales in the country, it appears those concerns, at least as it relates to Boeing, were wholly unfounded. "I can tell you -- having been intimately involved in the discussions and engagement with the governments both in the U.S. and China - we see progress on that front," Muilenburg said of the trade negotiations. "We see convergence, and we also see that there's clearly a mutual benefit to having a healthy aerospace industry for both the U.S. and China."The fact is, China needs Boeing as much or more than Boeing needs China. The country's expected to add one billion new passengers between now and 2040. That means it requires a lot more planes. Despite all the estimates of China's insatiable demand for aircraft -- it accounts for 18% of the demand for new aircraft globally -- those might actually be conservative providing Boeing with an even bigger cash cow than initially thought."China needs the airplanes for growth to fuel their economy and to meet their passenger growth and cargo growth needs," Muilenburg said.How do you meet an insatiable demand? You do. Boeing's got a fabulous problem that any CEO would love to have. The Defense Business Is Doing OkayThe supposed weak link in the Boeing chain is the company's defense business. It had seen revenues drop from $32.1 billion in 2007 to $21.1 billion a decade later. However, the company dug deep in 2018, winning several lucrative contracts, and increasing revenues by 13% in the process to $23.2 billion. In 2019, Boeing expects the defense unit to grow sales by 14%, delivering a second consecutive year of growth for the embattled division. Although these numbers are encouraging, the unit did see profits drop by 27% to $1.59 billion. As long as the commercial aircraft continues to push margins higher, shareholders will likely take the good with the bad. * 7 Stocks That Won Super Bowl Sunday In the long term, Boeing must address the defense business's margins. Global Services, the company's service business made a billion more than the defense business in 2018, on $6 billion less in sales. It Has Enormous Free Cash FlowBoeing's ability to generate free cash flow is something that I was relishing earlier in 2018. "In fiscal 2017, Boeing had $11.5 billion free cash flow, 85% of which was generated in the second through fourth quarters. If the same thing happens in 2018, Boeing should generate $18.3 billion in free cash flow," I wrote April 25 evaluating Boeing's Q1 2018 earnings. "Based on an enterprise value of $201.6 billion ($199.0 billion market cap, plus $12.5 billion debt, less $9.9 billion cash), Boeing has a forward FCF yield of 9.1%, which in my estimation puts it in value territory."OK, so my free cash flow estimate missed by several billion -- Boeing generated 80% of its free cash flow in the final three quarters of 2018, not 85% -- but it was still an impressive showing, upping FCF by $2 billion or 17% year over year. As for FCF yield, it currently is 5.7% [Free Cash Flow of $13.6 billion divided by Enterprise Value of $237.3 billion (Market cap of $233.4 billion plus total debt of $13.9 billion less $10 billion in cash, cash equivalents, and short-term investments)], which is pretty good considering it's gained 27% in five weeks. Assuming it hits the low-end of its outlook for operating cash flow in 2019 of $17 billion and allocates $2.3 billion to capital expenditures, free cash flow in 2019 should increase by 8% to $14.7 billion, bringing its FCF yield above 6%.Not bad for a tired old airplane manufacturer. BA Stock Is a Big Momentum PlayWhat's the old saying? A body in motion tends to stay in motion. That describes Boeing stock to a T. Each week, Canada's national newspaper, The Globe and Mail, produces an article about the week's most oversold and overbought stocks on the Toronto Stock Exchange. As Scott Barlow explains, a stock is thought to be oversold when its relative strength index (RSI) signal drops below 30 and overbought when it climbs above 70. For most of the past year, Boeing's RSI has been in a range between 30 and 75, rising above 70 on two occasions (October 2018, February 2019) and below 30 on a single occasion (November 2018). On a momentum basis, the chart suggests that BA is overbought at this point. * 10 F-Rated Stocks That Could Break Your Portfolio I've tried to highlight some of the reasons why investors should own Boeing in 2019 and beyond. Perhaps it will drop below $400 in the next few weeks. At that point, it will lose the "overbought" status and become a momentum buy once more. As I said earlier, Boeing is a potential $1,000 stock in the making. It's Investing in Supersonic JetsWho can forget the Concorde? That marvel of technology that could get a person from London to New York in less than 3.5 hours.Well, Boeing announced Feb. 5 that it had made a significant investment in Aerion, the Nevada-based developer of a supersonic business jet that's estimated to cost $120 million a pop. To get the plane ready for service, Boeing is going to provide engineering, manufacturing and flight testing services. The AS2 jet will fly at 1,000 miles per hour, an increase of 70% over current business jets. Also helping with the jet are General Electric (NYSE:GE) and Honeywell (NYSE:HON) who are responsible for the engines and cockpit respectively. Owned by Texas billionaire Robert Bass, consider this to be Boeing's version of a moonshot. As of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * Are These 7 Dividend Aristocrats ETFs Fit for a King? * 7 of the Best Emerging Markets Stocks to Buy * 5 Gold Stocks That Should Glitter in 2019 Compare Brokers The post 7 Reasons You Want Boeing Stock in Your Portfolio appeared first on InvestorPlace.
- Barrons.com•10 days ago
The Stock Market Might Not Be Ready for a Stronger Dollar
One of the themes of this earnings season is that a strong dollar is hurting revenues. That’s nothing to worry about if the U.S. dollar falls like many pundits expect. Still, there are a few factors, like the trade conflict, that mean investors should pay closer attention to the value of the greenback.
- Investor's Business Daily•11 days ago
The Black Box On Airplanes Is About To Enter The Internet Age
Honeywell and Curtiss-Wright will jointly build next-gen cockpit voice recorders that could transform accident investigations.
