In the latest close session, Honeywell International Inc. (HON) was down 1.25% at $221.79. Elsewhere, the Dow saw a downswing of 0.25%, while the tech-heavy Nasdaq appreciated by 0.31%.
The company's stock has dropped by 0.82% in the past month, falling short of the Conglomerates sector's gain of 1.76% and the S&P 500's gain of 5.05%.
The upcoming earnings release of Honeywell International Inc. will be of great interest to investors. In that report, analysts expect Honeywell International Inc. to post earnings of $2.63 per share. This would mark year-over-year growth of 5.62%. 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.
For the full year, the Zacks Consensus Estimates are projecting earnings of $10.37 per share and revenue of $40.2 billion, which would represent changes of +4.85% and +4.41%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Honeywell International Inc. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.05% decrease. At present, Honeywell International Inc. boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Honeywell International Inc. has a Forward P/E ratio of 21.65 right now. This signifies a premium in comparison to the average Forward P/E of 16.06 for its industry.
It's also important to note that HON currently trades at a PEG ratio of 2.62. 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 2.03.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 70, putting it in the top 29% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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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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