Honeywell International Inc. (HON) closed at $221.79 in the latest trading session, marking a -1.03% move from the prior day. This change lagged the S&P 500's 0.84% loss on the day. Meanwhile, the Dow lost 0.7%, and the Nasdaq, a tech-heavy index, lost 0.91%.
Prior to today's trading, shares of the company had gained 0.54% outpaced the Conglomerates sector's loss of 0% and lagged the S&P 500's gain of 1.44%.
The investment community will be paying close attention to the earnings performance of Honeywell International Inc. in its upcoming release. The company is expected to report EPS of $2.63, up 5.62% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $10.01 billion, indicating a 4.48% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.37 per share and revenue of $40.2 billion. These totals would mark changes of +4.85% and +4.41%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Honeywell International Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.13% downward. Honeywell International Inc. is currently a Zacks Rank #3 (Hold).
Digging into valuation, Honeywell International Inc. currently has a Forward P/E ratio of 21.6. This expresses a premium compared to the average Forward P/E of 16.08 of its industry.
One should further note that HON currently holds a PEG ratio of 2.61. 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. As the market closed yesterday, the Diversified Operations industry was having an average PEG ratio of 1.99.
The Diversified Operations industry is part of the Conglomerates sector. Currently, this industry holds a Zacks Industry Rank of 68, positioning it in the top 28% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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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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