Honeywell (HON) closed the most recent trading day at $147.47, moving -0.73% from the previous trading session. This change was narrower than the S&P 500's 1.66% loss on the day. At the same time, the Dow lost 1.56%, and the tech-heavy Nasdaq lost 3.03%.
Coming into today, shares of the industrial conglomerate had lost 4.28% in the past month. In that same time, the Conglomerates sector lost 7.02%, while the S&P 500 lost 2.43%.
HON will be looking to display strength as it nears its next earnings release, which is expected to be January 25, 2019. In that report, analysts expect HON to post earnings of $1.88 per share. This would mark year-over-year growth of 1.62%. Meanwhile, our latest consensus estimate is calling for revenue of $9.69 billion, down 10.61% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.98 per share and revenue of $41.77 billion. These totals would mark changes of +12.24% and +3.05%, respectively, from last year.
Any recent changes to analyst estimates for HON should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Over the past month, the Zacks Consensus EPS estimate has moved 2.12% lower. HON is currently sporting a Zacks Rank of #4 (Sell).
Looking at its valuation, HON is holding a Forward P/E ratio of 18.61. This represents a premium compared to its industry's average Forward P/E of 17.82.
It is also worth noting that HON currently has a PEG ratio of 1.9. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Diversified Operations was holding an average PEG ratio of 1.9 at yesterday's closing price.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 146, putting it in the bottom 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.