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Honeywell International Inc. (HON) Gains But Lags Market: What You Should Know

Honeywell International Inc. (HON) closed the most recent trading day at $201.67, moving +0.91% from the previous trading session.

This story originally appeared on Zacks

Honeywell International Inc. (HON) closed the most recent trading day at $201.67, moving +0.91% from the previous trading session. This change lagged the S&P 500's 1.78% gain on the day. Meanwhile, the Dow gained 1.61%, and the Nasdaq, a tech-heavy index, added 0.95%.

- Zacks

Prior to today's trading, shares of the company had lost 8.38% over the past month. This has lagged the Conglomerates sector's loss of 4.68% and the S&P 500's loss of 2.63% in that time.

Wall Street will be looking for positivity from Honeywell International Inc. as it approaches its next earnings report date. In that report, analysts expect Honeywell International Inc. to post earnings of $2.09 per share. This would mark year-over-year growth of 0.97%. Meanwhile, our latest consensus estimate is calling for revenue of $8.77 billion, down 1.41% from the prior-year quarter.

HON's full-year Zacks Consensus Estimates are calling for earnings of $8.06 per share and revenue of $34.51 billion. These results would represent year-over-year changes of +13.52% and +5.73%, respectively.

Investors should also note any recent changes to analyst estimates for Honeywell International Inc.These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 past month, the Zacks Consensus EPS estimate has moved 0.12% lower. Honeywell International Inc. is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Honeywell International Inc. currently has a Forward P/E ratio of 24.8. This valuation marks a premium compared to its industry's average Forward P/E of 17.5.

Meanwhile, HON's PEG ratio is currently 2.38. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Diversified Operations was holding an average PEG ratio of 1.64 at yesterday's closing price.

The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 56, which puts it in the top 23% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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