In the latest trading session, Honeywell International Inc. (HON) closed at $226.67, marking a -0.34% move from the previous day. The stock's change was more than the S&P 500's daily loss of 0.53%. Meanwhile, the Dow experienced a drop of 0.26%, and the technology-dominated Nasdaq saw a decrease of 0.83%.
Shares of the company witnessed a gain of 5.98% over the previous month, beating the performance of the Conglomerates sector with its gain of 4.57% and the S&P 500's gain of 5.17%.
Market participants will be closely following the financial results of Honeywell International Inc. in its upcoming release. The company is forecasted to report an EPS of $2.63, showcasing a 5.62% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $10.01 billion, up 4.48% from the year-ago period.
HON's full-year Zacks Consensus Estimates are calling for earnings of $10.38 per share and revenue of $40.22 billion. These results would represent year-over-year changes of +4.95% and +4.46%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Honeywell International Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.13% higher within the past month. Honeywell International Inc. is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Honeywell International Inc. is currently trading at a Forward P/E ratio of 21.91. For comparison, its industry has an average Forward P/E of 16.49, which means Honeywell International Inc. is trading at a premium to the group.
Investors should also note that HON has a PEG ratio of 2.65 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Diversified Operations industry was having an average PEG ratio of 1.97.
The Diversified Operations industry is part of the Conglomerates sector. At present, this industry carries a Zacks Industry Rank of 89, placing it within the top 37% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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Honeywell International Inc. (HON): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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