Subscribe to Entrepreneur for $5

Honeywell International Inc. (HON) Gains As Market Dips: What You Should Know

Honeywell International Inc. (HON) closed the most recent trading day at $209, moving +1.06% from the previous trading session.

This story originally appeared on Zacks

Honeywell International Inc. (HON) closed the most recent trading day at $209, moving +1.06% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.06%. Meanwhile, the Dow gained 0.59%, and the Nasdaq, a tech-heavy index, lost 0.3%.

- Zacks

Prior to today's trading, shares of the company had gained 0.27% over the past month. This has lagged the Conglomerates sector's gain of 1.92% and the S&P 500's gain of 5.76% in that time.

Investors will be hoping for strength from Honeywell International Inc. as it approaches its next earnings release. The company is expected to report EPS of $2.09, up 0.97% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $8.73 billion, down 1.95% from the year-ago period.

It is also important to note the recent changes to analyst estimates for Honeywell International Inc.These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.12% lower. Honeywell International Inc. currently has a Zacks Rank of #4 (Sell).

In terms of valuation, Honeywell International Inc. is currently trading at a Forward P/E ratio of 22.93. For comparison, its industry has an average Forward P/E of 18.62, which means Honeywell International Inc. is trading at a premium to the group.

Meanwhile, HON's PEG ratio is currently 2.2. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Diversified Operations was holding an average PEG ratio of 1.44 at yesterday's closing price.

The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 75, putting it in the top 30% 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.

To follow HON in the coming trading sessions, be sure to utilize

Zacks’ Top Picks to Cash in on Artificial Intelligence

This world-changing technology is projected to generate $100s of billions by 2025. From self-driving cars to consumer data analysis, people are relying on machines more than we ever have before. Now is the time to capitalize on the 4th Industrial Revolution. Zacks’ urgent special report reveals 6 AI picks investors need to know about today.

See 6 Artificial Intelligence Stocks With Extreme Upside Potential>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report


Honeywell International Inc. (HON): Free Stock Analysis Report


To read this article on click here.


Zacks Investment Research