Honeywell International Inc. (HON) Registers a Bigger Fall Than the Market: Important Facts to Note

Honeywell International Inc. (HON) ended the recent trading session at $196.35, demonstrating a -1.69% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.29%. At the same time, the Dow lost 0.35%, and the tech-heavy Nasdaq lost 0.3%.

The company's shares have seen an increase of 2.49% over the last month, not keeping up with the Conglomerates sector's gain of 9.25% and the S&P 500's gain of 4.42%.

The upcoming earnings release of Honeywell International Inc. will be of great interest to investors. The company's earnings per share (EPS) are projected to be $2.18, reflecting a 5.31% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.01 billion, up 1.6% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $9.96 per share and a revenue of $38.41 billion, demonstrating changes of +8.73% and +4.78%, respectively, from the preceding year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Honeywell International Inc. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.08% higher. Right now, Honeywell International Inc. possesses a Zacks Rank of #3 (Hold).

With respect to valuation, Honeywell International Inc. is currently being traded at a Forward P/E ratio of 20.05. This signifies a premium in comparison to the average Forward P/E of 18.55 for its industry.

Meanwhile, HON's PEG ratio is currently 2.24. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Diversified Operations was holding an average PEG ratio of 2.24 at yesterday's closing price.

The Diversified Operations industry is part of the Conglomerates sector. At present, this industry carries a Zacks Industry Rank of 51, placing it within the top 21% of over 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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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.

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