HON - Honeywell International Inc.
175.30 +0.29 (0.17%)
After hours: 7:20PM EDT
| Previous Close | 177.14 |
| Open | 177.36 |
| Bid | 174.37 x 1000 |
| Ask | 175.30 x 1200 |
| Day's Range | 174.53 - 177.36 |
| 52 Week Range | 123.48 - 178.47 |
| Volume | 1,634,358 |
| Avg. Volume | 2,654,346 |
| Market Cap | 127.362B |
| Beta (3Y Monthly) | 1.20 |
| PE Ratio (TTM) | 19.40 |
| EPS (TTM) | 9.02 |
| Earnings Date | Jul 18, 2019 |
| Forward Dividend & Yield | 3.28 (1.85%) |
| Ex-Dividend Date | 2019-05-23 |
| 1y Target Est | 181.05 |
- Reuters•18 hours ago
UPDATE 2-China says will freeze out U.S. companies that sell Taiwan arms
China's government and Chinese companies will cut business ties with U.S. firms selling arms to Taiwan, China's Foreign Ministry said on Monday, declining to give details of the sanctions in a move likely to worsen already poor ties with Washington. China claims self-ruled and democratic Taiwan as its own and has never renounced the use of force to bring it under Beijing's control. China regularly calls Taiwan the most sensitive issue in its relations with the United States.
- Zacks•4 days ago
Honeywell (HON) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Honeywell (HON) closed at $177.14, marking a +1.49% move from the previous day.
- Moody's•4 days ago
Darwin Cove Convention Centre Pty Limited -- Moody's announces completion of a periodic review of ratings of Darwin Cove Convention Centre Pty Limited
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Darwin Cove Convention Centre Pty Limited and other ratings that are associated with the same analytical unit. "IMPORTANT NOTICE: MOODY'S RATINGS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.
- Zacks•4 days ago
3 Internet of Things Stocks to Buy for July
Today we've highlighted three, Zacks buy-ranked stocks with growing IoT businesses that investors might want to consider at the moment...
- InvestorPlace•4 days ago
GE Stock Is Making the Right Moves to Build Investor Confidence
General Electric (NYSE:GE) shareholders have so far had a good year in 2019. Year-to-date, GE stock is up over 34%.Source: Shutterstock Most of the yearly gains came in the first two months of the year as investors seemed to believe that management would be able to create shareholder value in the long run.Between March and so far in July, GE stock has been trading in a range. Therefore investors are now wondering whether the bulls or the bears will have the upper hand in Q3.InvestorPlace - Stock Market News, Stock Advice & Trading TipsGE stock is expected to report earnings on July 31. Let us take a look at what may be in store for General Electric stock as we approach the earnings season. * 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond GE's Q1 Earnings and Long-Term CatalystsOn April 30, General Electric reported Q1 2019 earnings, when the group beat earnings and revenue forecasts on orders up 9%. EPS came at 14 cents vs. expected 9 cents a share.At present, the company reports revenue in six business segments: Power, Renewable Energy, Aviation, Oil and Gas, Healthcare, and Capital.General Electric's Aviation, Oil & Gas, and Healthcare businesses delivered steady revenue and earnings growth.GE Aviation business, which is the company's largest segment by revenue, primarily builds and services aircraft engines. Earlier in June, Wall Street welcomed the news that the conglomerate signed lucrative contracts at the Paris Air Show.The segment took significant orders for LEAP engines as well as long-term service agreements (LTSAs). Wall Street pay close importance to service agreements as over close to half of the revenues come from from after-market services.Our readers may be interested to know that several analysts believe that the GE Aviation, which serves both commercial and military aircraft markets, may be worth about $100 billion when GE's own market cap is only 89 billion. Therefore, long-term investors may want to pay attention to the growth trajectory of the Aviation segment.The Oil & Gas Division, which is a cyclical business, has now returned to profitability.In Healthcare, GE has robust exposure to the hospital and lab equipment market. Several analysts see the possibility of an IPO for Healthcare.Within a few quarters, the company is aiming to have a much smaller GE Capital operation. The unit reduced its liabilities as it completed $1.1 billion in asset reductions in the quarter.GE's industrial free cash flow is a key metric for many analysts and shareholders. For the quarter, it showed a loss of $1.2 billion. Shareholders cheered General Electric in general, but especially the Power segment, burned less cash than feared. A Year in Progress for GE StockIn March, CEO Larry Culp called 2019 a "reset year" and urged patience during what has been portrayed as a multiyear turnaround. Following a rotation of CEOs, Culp took over from John Flannery in October. And has had a busy nine months so far.Under new leadership, General Electric has been taking several strategic steps to slim the group down to a few core units and raise cash by divesting from several businesses that no longer serve the group.These moves to clean up the balance sheet include the recent sales of the biopharma segment of the company's healthcare operation to Danaher (NYSE:DHR), a smaller industrial player, for $21 billion and the merger of its transportation business with Wabtec (NYSE:WAB).As a side note, before joining GE, Culp had successfully headed and turned around Danaher, so industry watchers were generally supportive of the sale of the biopharma operation to the group.It has recently been reported that management would also like to sell GE Ventures, a diverse collection of over 100 startup companies.Long-term GE investors know that its Power division has had significant problems an sharp revenue declines in recent years. GE's core power product is the gas turbine.Wall Street is expecting the company to break up the Power segment in the coming quarters, a move that may benefit the GE share price.In other words through asset sales and spinoffs, GE is aiming to generate enough cash to reduce its $121 billion debt load and become more manageable.Last year, Culp took over a company with significant debt and unfunded pension liabilities and investors are understandably still nervous.Yet, overall, Wall Street approves the directional shift which seems to put the company on a stronger ground. And investors are reacting positively to these strategic moves that Culp has been taking.Turnarounds in industrial giants such as General Electric take a long time and never occur in a straight path. In the next earnings report, GE investors are likely to pay attention to improvements in individual segment margins and free cash flow trends. The GE Stock Price NowMany long-term shareholders know that General Electric stock price is a shadow of its former self. Let us go a bit back in history.In August 2000, GE stock hit an all-time high of $60.75. In October 2007, it was hovering around $40. By March 2009, at the heights of the great recession, General Electric's risky balance had sheet pushed the shares down to $5.73.In 2016, GE stock saw a decade-high of $33. But troubles for the General Electric share price began once again with 2017. Losses in the GE Capital unit and plummeting sales and profitability in General Electric's Power business put pressure on the stock.The market decline of 2018 pushed the shares once again to the single digits and in December of last year, the price saw a decade-low of $6.66.As of this writing, GE stock is hovering around $10.2. So Should Long-Term Investors Buy GE Stock?After years of continuous price volatility and decline, it is still proving hard for GE to regain investor trust for the long term.If you follow technical analysis, the long-term GE stock chart has been improving. In other words, bears are not in control of the stock price at this point as the worst has likely already been priced into General Electric stock.From a longer-term technical analysis perspective, I'd expect the stock to move up another 15-20% from the current levels within a year. Shorter-term, the stock will possibly continue to trade in a range, hovering around $10.I am also encouraged by the fact that GE stock's current price-to-sales (P/S) ratio is over 0.73x. Companies generate revenue from the sale of goods and services. Analysts prefer a low P/S ratio, ideally below 1. However, a P/S number between 1 and 2 is more common. To put the metric into perspective, S&P 500's average price-to-sales ratio is 2.1x.Another way to analyze the P/S ratio is to compare companies in similar industries or segments. Our readers may be interested to know that the P/S ratio for Boeing (NYSE:BA) is 2x. For Honeywell (NYSE:HON) stock, the P/S ratio stands at 3.2x. And for 3M (NYSE:MMM) the P/S is almost 4x.Investors who do not yet have a position may want to wait until GE's earnings report in late July to have a better view on the developments within individual segments. Analysts will pay special attention to the sales figures in different units as well as the level of free cash flow.Those investors who already own GE shares, may either consider taking some money off the table or hedging their positions. As for hedging strategies, covered calls or put spreads with Aug. 16 expiry could be appropriate as straight put purchases are likely to be expensive due to heightened volatility. Then, you may reevaluate your long position after General Electric reports earnings. The Bottom Line on GE StockOver the past few months, the narrative for General Electric stock has changed for the better and GE is not making regular negative headlines any more.I believe that many long-term investors are ready to give GE management, which has started dealing with the pressing issues, the benefit of the doubt. Therefore, I'd see any dip in GE stock price an opportunity to go long.The author has GE covered calls (July 12 expiry). More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Buy for Less Than Book * 7 Marijuana Stocks With Critical Levels to Watch * The 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond The post GE Stock Is Making the Right Moves to Build Investor Confidence appeared first on InvestorPlace.
- Simply Wall St.•4 days ago
Should Honeywell International Inc. (NYSE:HON) Be Your Next Stock Pick?
Honeywell International Inc. (NYSE:HON) is a company with exceptional fundamental characteristics. Upon building up an...
- Zacks•5 days ago
Earnings Preview: Honeywell (HON) Q2 Earnings Expected to Decline
Honeywell (HON) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
- InvestorPlace•5 days ago
3 Big Stock Charts for Thursday: Davita, Honeywell and Advanced Micro Devices
The market had been much higher at one point in the day on Wednesday, buoyed by commentary from Federal Reserve Chairman Jerome Powell who all but said a rate cut was coming, and soon. But, even with the intraday pullback, the S&P 500 ended the day up 0.45%, hitting a record high in the process.Source: Allan Ajifo via Wikimedia (Modified)Tesla (NASDAQ:TSLA) gets a little bit of extra credit for keeping the market in the black. Shares of the electric carmaker were up nearly 4% on the heels of news it was planning to ramp-up production at its Fremont, California plant. Memory chip maker Micron Technology (NASDAQ:MU) was up 4% as well after the glut-beleaguered company announced it raised a few billion by issuing some well-received notes.At the other end of the spectrum, Levi Strauss (NYSE:LEVI) tumbled 12% after the jeans company said the second half of the year wasn't looking quite as promising as first believed.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Best ETFs for 2019: The Race for 1 Intensifies None of those picks are great prospects headed into Thursday's session though. Rather, it's the stock charts of Davita (NYSE:DVA), Honeywell International (NYSE:HON) and Advanced Micro Devices (NASDAQ:AMD) that look like your best bets, even if not all for bullish reasons. Advanced Micro Devices (AMD)Advanced Micro Devices shares, in simplest terms, are at an inflection point. Although the rally since late last year has been persistent and rewarding, for the second time in a month AMD is knocking on the doors of record highs. If the bulls fail once again, this third try may not set up a fourth attempt anytime soon. Rather, this could serve as the pivot into a more prolonged downtrend, and the backdrop is anything but encouraging. Click to Enlarge * The ceiling in question is right around $34, plotted in white on both stock charts. This is the third time since mid-2018 it has been tested. * While the advance appears to have momentum, there's a stark lack of volume behind the gain thus far. * A breakout move past the $34 area could be catalytic, but if volume doesn't materialize in a big way, it could also be nothing but a setup for an even bigger wave of profit-taking. Davita (DVA)In a perfect world a stock's trading action would always make sense, and moves -- higher or lower -- wouldn't need prodding. We don't live or trade in a perfect world though.With that as the backdrop (and perhaps with a bit of irony thrown in), this week's drubbing of Davita shares may be the very thing they needed to restart a bigger-picture rally effort that ultimately failed to follow through last week. It was news that prompted the shakeup, which isn't ideal. It's still the hand traders were dealt though. * 10 Stocks to Sell for an Economic Slowdown Click to Enlarge * As of last Friday, DVA had just pushed above its 200-day moving average line, plotted in white on both stock charts. On Monday, that move was completely up-ended, by headlines. * Tuesday's miserable opening wasn't so miserable after all. With some help from the purple 50-day moving average and even more held with a semi-established floor around $50.76, Davita logged a convincing intraday reversal pattern. * Wednesday's follow-through was key, and on above-average volume to boot. Honeywell International (HON)Finally, it's far from being in deep trouble yet, but Honeywell International shares are slowly moving in that direction. It's the pace and nature of the slowdown, in fact, that's raising so many red flags.Either, with a runup that has far outpaced the broad market's gain since the very end of last year, the sheer risk of the rollover turning into something more merits a closer look. Click to Enlarge * It's loosely evident on both stock charts, put the daily chart's purple 50-day moving average line's flattening action best shows the gradual slowdown underway. * The clincher here would be a MACD crossunder on the weekly chart. Such signals have accurately marked sizable pullbacks a couple of times since early 2018. * It may have more to do with the season than the stock, but there's been minimal volume behind the worst of the bearish days that have started this slow, arching rollover.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell for an Economic Slowdown * 7 Marijuana Penny Stocks That I May Buy * 7 of The Best Schwab ETFs for Low Fees The post 3 Big Stock Charts for Thursday: Davita, Honeywell and Advanced Micro Devices appeared first on InvestorPlace.
- Zacks•6 days ago
Carlisle Acquires Ecco Finishing, Strengthens CFT Segment
Carlisle's (CSL) buyout of Ecco Finishing is expected to expand CFT's portfolio of adhesives and sealants application equipment.
- Bloomberg•6 days ago
Banned Chinese Security Cameras Are Almost Impossible to Remove
(Bloomberg) -- U.S. federal agencies have five weeks to rip out Chinese-made surveillance cameras in order to comply with a ban imposed by Congress last year in an effort to thwart the threat of spying from Beijing.But thousands of the devices are still in place and chances are most won’t be removed before the Aug. 13 deadline. A complex web of supply chain logistics and licensing agreements make it almost impossible to know whether a security camera is actually made in China or contains components that would violate U.S. rules. The National Defense Authorization Act, or NDAA, which outlines the budget and spending for the Defense Department each year, included an amendment for fiscal 2019 that would ensure federal agencies do not purchase Chinese-made surveillance cameras. The amendment singles out Zhejiang Dahua Technology Co. and Hangzhou Hikvision Digital Technology Co., both of which have raised security concerns with the U.S. government and surveillance industry.Hikvision is 42% controlled by the Chinese government. Dahua, in 2017, was found by cybersecurity company ReFirm Labs to have cameras with covert back doors that allowed unauthorized people to tap into them and send information to China. Dahua said at the time that it fixed the issue and published a public notice about the vulnerability. The U.S. government is considering imposing further restrictions by banning both companies from purchasing American technology, people familiar with the matter said in May. “Video surveillance and security equipment sold by Chinese companies exposes the U.S. government to significant vulnerabilities,” said Representative Vicky Hartzler, a Republican from Missouri, who helped draft the amendment. Removing the cameras will “ensure that China cannot create a video surveillance network within federal agencies,” she said at the time.Dahua declined to comment on the ban. In a company statement, Hikvision said it complies with all applicable laws and regulations and has made efforts to ensure its products are secure. A company spokesman added that the Chinese government is not involved in the day-to-day operations of Hikvision. "The company is independent in business, management, assets, organization and finance from its controlling shareholders," the spokesman said.Despite the looming deadline to satisfy the NDAA, at least 1,700 Hikvision and Dahua cameras are still operating in places where they’ve been banned, according to San Jose, California-based Forescout Technologies, which has been hired by some federal agencies to determine what systems are running on their networks. The actual number is likely much higher, said Katherine Gronberg, vice president of government affairs at Forescout, because only a small percentage of government offices actually know what cameras they’re operating. The agencies that use software to track devices connected to their networks should be able to comply with the law and remove the cameras in time, Gronberg said. “The real issue is for organizations that don’t have the tools in place to detect the banned devices,” she added. Several years ago the Department of Homeland Security tried to force all federal agencies to secure their networks by tracking every connected device. As of December, only 35% of required agencies had fully complied with this mandate, according to a 2018 report by the Government Accountability Office. As a result, most U.S. federal agencies still don’t know how many or what type of devices are connected to their networks and are now left trying to identify the cameras manually, one by one. Those charged with complying with the ban have discovered it’s much more complicated than just switching off all Hikvision or Dahua-labeled cameras. Not only can Chinese cameras come with U.S. labels, but many of the devices, including those made by Hikvision, are likely to contain parts from Huawei Technologies Co., the target of a broad government crackdown and whose chips power about 60% of surveillance cameras. “There are all kinds of shadowy licensing agreements that prevent us from knowing the true scope of China’s foothold in this market,” said Peter Kusnic, a technology writer at business research firm The Freedonia Group. “I’m not sure it will even be possible to ever fully identify all of these cameras, let alone remove them. The sheer number is insurmountable.” Video surveillance is big business in the U.S. Sales of video cameras to the government are projected to climb to $705 million in 2021 from $570 million in 2016, according to The Freedonia Group. Hikvision is the world’s largest video-surveillance provider, with cameras installed in U.S. businesses, banks, airports, schools, Army bases and government offices. Its cameras can produce sharp, full-color images in fog and near-total darkness and use artificial intelligence and 3D imaging to power facial recognition systems on a vast scale.Once they arrive in the country, some of Dahua and Hikvision’s cameras are sent to their U.S.-based warehouses. Others go to equipment manufacturers like Panasonic Corp. or Honeywell International Inc., and are sold under those brands, said John Honovich, founder of video surveillance site IPVM. Then the cameras are bought by intermediaries, such as security firms, which go on to sell them to government agencies and private businesses. The NDAA also covers Dahua and Hikvision’s extensive agreements with original equipment manufacturers, sweeping up any vendor who re-sells the devices or uses the companies’ equipment.Effectively, two cameras running identical Hikvision firmware could carry completely different labels and packaging. This means it would be nearly impossible to tell if the thousands of video cameras installed across the country are actually re-labelled Chinese devices. A Honeywell spokeswoman said the company couldn’t track these re-labelled products, even if asked. Panasonic didn’t respond to emailed requests for comment.This convoluted supply chain has left government agencies confused over how to actually obey the law. “We’ve been trying to get our arms around how big the problem is,” says a government worker at the Department of Energy, who asked to remain anonymous because he’s not authorized to speak publicly. “I don’t think we have the full picture on how many of these cameras are really out there,” he said.The law itself is vague on whether it means agencies must remove the cameras or simply stop renewing existing contracts. A group of government officials and experts will meet next week in Washington to try to parse the legislation. Hikvision has about 50,000 installation companies and integrated partners that are all wondering how broadly the law is likely to be interpreted.Many have contacted the company, asking how they could be affected, according to a person familiar with the discussions. Some security vendors are already refusing to purchase equipment from Hikvision and Dahua. Shares of both companies have tumbled since March amid speculation of U.S. sanctions. Last month U.S. President Donald Trump said he would allow U.S. companies to resume supplying some of their products to Huawei, if they apply for a license and if there is no threat to national security.If someone is routinely tapping into cameras to spy on federal agencies, they could easily determine the identities of those who work in government departments and even CIA operatives, said Stephen Bryen, former deputy under-secretary of defense for trade security policy. “This is extremely dangerous,” he said. “It can’t be tolerated and quite frankly every agency should be writing its own directives to make sure the job gets done.”(Updates with Trump policy on granting licenses to Huawei suppliers. An earlier version of this story corrected the location of Forescout Technologies.)To contact the author of this story: Olivia Carville in New York at ocarville1@bloomberg.netTo contact the editor responsible for this story: Molly Schuetz at mschuetz9@bloomberg.net, Andrew PollackFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- Zacks•6 days ago
Is Honeywell International (HON) Stock Outpacing Its Conglomerates Peers This Year?
Is (HON) Outperforming Other Conglomerates Stocks This Year?
- Barrons.com•6 days ago
Honeywell International Stock and Nucor Both Benefit From This Trend
Jefferies thinks factory automation is an investible theme. Automation is one reason the broker likes shares of Honeywell, maker of many productivity solutions for industrial businesses. But strangely, Jefferies also recommends shares of steelmaker Nucor because of the same automation trends.
- Zacks•7 days ago
ITT's Matrix Composites Buyout Expands Aerospace Business
ITT's Matrix Composites buyout will help it solidify the aerospace business of its Connect and Control Technologies segment.
- Markit•7 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 positive * 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 | NeutralETF activity is neutral. The $4.54 billion in inflows that ETFs holding HON received over the last one-month is a decline from earlier in the period and among the weakest of the past year. 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 | PositiveThe current level displays a positive indicator. HON credit default swap spreads are near the lowest level of the last three years and indicate the market's continued positive 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.
- Investor's Business Daily•8 days ago
Is GE Stock A Buy Right Now? Here's What Earnings, Chart Say
General Electric is making major changes after a brutal couple of years. Here is what the fundamentals and technical analysis say about buying GE stock now.
- Motley Fool•8 days ago
Why Honeywell Rocketed 32% in the First Half
The industrial conglomerate has continued its run of raising guidance.
- Zacks•12 days ago
Garmin's G5000 Certification to Aid Aviation Business Growth
Garmin (GRMN) receives certification for G5000 integrated advanced flight deck for crew-flown business jets Textron Aviation's Citation Excel and Citation XLS.
- Zacks•13 days ago
GE & Flexjet Partner for Flight Data Transmission Technology
General Electric's (GE) partnership with Flexjet will allow the latter's fleet of aircraft to transmit flight data wirelessly upon touchdown on an instant basis.
- TheStreet.com•13 days ago
Honeywell Expected to Keep Buzzing Higher
HON is expected to maintain its impressive rise, with around $200-$205 as its anticipated price target.
- Kiplinger•14 days ago
10 Top-Rated Industrial Stocks to Snap Up Now
If you are looking for compelling investing opportunities, consider an often-overlooked area of the market: industrial stocks.Industrials frequently have made headlines because its components have been pressured by tariff volleys between the U.S. and China. But despite this, the industrial sector of the Standard & Poor's 500-stock index, at 12.6% returns, is the third-best-performing sector of the market behind technology and real estate. And profit growth could see industrial stocks continue to outperform the broader market."We're living in a world where growth is declining," John Davi, chief investment officer at Astoria Portfolio Advisors, told CNBC back in March. "S&P; 500 earnings are de-accelerating, so if you can get stocks that have above-average growth to the S&P;, then that's really attractive." And while consensus estimates have been scaled back since then, FactSet's Earnings Insight still shows that industrials are expected to grow profits 5.2% this calendar year - better than the 3.2% projected for the S&P; 500.The sector still faces headline risk, so you only want to buy the best of the best. To help with that, we've pinpointed 10 of the Street's best-rated industrials by using TipRanks' Stock Screener to scan only for companies in the industrial sector with a "Strong Buy" analyst consensus. The result: This group of 10 industrial stocks to buy. SEE ALSO: 50 Top Stocks That Billionaires Love
- Zacks•18 days ago
Honeywell (HON) Gains But Lags Market: What You Should Know
In the latest trading session, Honeywell (HON) closed at $174.59, marking a +0.43% move from the previous day.
- InvestorPlace•18 days ago
Is It Finally Time to Go Long GE Stock?
General Electric (NYSE:GE) stock has had a stunning fall from grace. Viewed as an American industrial titan for decades, the company has undergone a miraculous deterioration. Three years ago, GE stock was trading north of $30. In December 2018 it was flirting with falling below $6. Now back above $10, GE stock is showing signs of life. Does that make it a buy?Source: Shutterstock From a fundamental perspective, the answer seems like a resounding "no." From a technical point of view, though, GE stock is looking much healthier. But just because its charts are pointing to potential gains doesn't mean its balance sheet issues have been resolved or that its cash flow woes have vanished * The 7 Top Small-Cap Stocks Of 2019 The Growling BearJPMorgan analyst Stephen Tusa called the demise of GE stock. He was the first analyst to turn bearish on the industrial conglomerate and, for the most part, he's stuck to his guns. As GE stock fell last year, Tusa was ahead of the ball. He would lower his price target or issue negative reports only to see the stock price get nailed weeks or months later on continued weak fundamentals.InvestorPlace - Stock Market News, Stock Advice & Trading TipsTusa told investors to stop selling GE stock in December. Well, sort of.He raised his "sell" rating on General Electric stock to a "hold" rating, but maintained his $6 price target. The shares bottomed near $6.60 and embarked on a violent upside reversal. Investors -- or at least momentum traders -- used Tusa's upgrade as an opportunity to squeeze GE stock higher.I don't mean to put too much weight on one analyst. But it got to the point that investors were using Tusa's statements, rather than those of GE's management, to determine how the company was really doing.Tusa downgraded GE stock again a few months ago. He now has a "sell" rating and a Street-low $5 price target on General Electric stock. While many of his peers and management are cheering the company's "conservative" $55 billion of new aviation orders from the Paris Aviation Show, Tusa said the takeaway for GE "was on net more negative than even we were thinking when it comes to the Aviation debate." Valuing General Electric StockGiven the bullish price action of GE stock since December, it's no wonder Tusa's bearish stance has drawn some criticism. And that's where there's a diversion between GE's fundamentals and the technicals of GE stock.Fundamentally, it's hard to make a case for being long General Electric stock. But as you'll see in a moment on the charts, the stock continues to get healthier.Management already told us that the company's cash flows would be pressured for the rest of this year and be weak next year as well. For a company like GE, that's not good news. The company has already essentially slashed its dividend down to nothing and has had to part ways with assets at less-than-favorable prices.Analysts' expectations for the company aren't great, either.Analysts, on average, are calling for earnings of 59 cents per share this year, a near-10% decline from last year's 65 cents per share. The consensus estimate for 2020 calls for earnings of 74 cents per share. If attained, that represents growth of 25% from 2019. However, it's still lower than the 76 cents of basic EPS that GE had in 2016.Its revenue is expected to decline 3.8% this year to about $117 billion and rebound just 1.3% in 2020 to $118.5 billion. But its 2020 top line, like its 2020 bottom line, is expected to be lower in 2020 than it was in 2018. Moreover, in 2016 the company generated revenue of $119.4 billion.In short, GE has been bleeding like crazy. General Electric stock has been rallying because investors are banking that management can stop the bleeding. If it can't, Tusa's price target may pan out. If it can, the shares will probably be able to climb over time.Compared to a company like Honeywell (NYSE:HON) or a high-dividend stock like 3M Co (NYSE:MMM) though, it's hard to find GE stock attractive. Trading GE Stock Click to EnlargeNot long ago, I pointed out that GE stock could rebound. My statement came as the shares were knocking on the door to $10.50, which has been range resistance throughout 2019. The stock broke through and ran to $10.71, but then retreated.At the time, I said that, if its breakout failed, GE needed to use its major moving averages as its support. GE is now using its 20-day moving average as support. If GE stock stays above the 20-day moving average , a retest of the $10.50 resistance point should be in the cards.GE still has plenty of support below the 20-day. The now-uptrending 50-day moving average is $9.92, while the 200-day moving average is $9.61. Just above that is prior downtrend resistance (depicted by the blue line). Below all that, GE stock has range support at $9.The bottom line? See if GE gets another opportunity to break out over $10.50.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 7 Top Small-Cap Stocks Of 2019 * Critical Levels to Watch in 7 Marijuana Stocks * 5 Smaller Cloud Stocks That Have Plenty of Potential Compare Brokers The post Is It Finally Time to Go Long GE Stock? appeared first on InvestorPlace.
- Investopedia•19 days ago
Why Industrial Stocks Are Racing Past S&P 500 Despite Trade War
The protracted trade war between the U.S. and China, plus decelerating global GDP growth, were supposed to hurt industrial stocks. New orders for non-defense capital goods rose by 0.4% from April to May and, overall, businesses are still making expensive investments, wrote Paul Ashworth, an economist at Capital Economics, in a note to clients cited by The Wall Street Journal. Leading industrials include Emerson Electric Co. (EMR), Honeywell International Inc. (HON), Union Pacific Corp. (UNP), CSX Corp. (CSX), Stanley Black & Decker Inc. (SWK), General Electric Co. (GE), and Boeing Co. (BA).
- Simply Wall St.•20 days ago
Do You Know What Honeywell International Inc.'s (NYSE:HON) P/E Ratio Means?
This article is written for those who want to get better at using price to earnings ratios (P/E ratios). We'll look at...
- Zacks•21 days ago
3 Low-Volatility Stocks & ETFs to Buy
Trade war tensions, geopolitical risks and the Fed's likely policy easing may boost low-volatility stocks and ETFs in the coming days.
