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Honeywell International Inc. (HON) Laps the Stock Market: Here's Why

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Honeywell International Inc. (HON - Free Report) closed the most recent trading day at $186.52, moving +1.01% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.63%. On the other hand, the Dow registered a gain of 0.59%, and the technology-centric Nasdaq increased by 0.39%.

Prior to today's trading, shares of the company had gained 0.08% over the past month. This has outpaced the Conglomerates sector's loss of 7.34% and the S&P 500's loss of 3.39% in that time.

Market participants will be closely following the financial results of Honeywell International Inc. in its upcoming release. The company plans to announce its earnings on October 26, 2023. The company is predicted to post an EPS of $2.22, indicating a 1.33% decline compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $9.21 billion, indicating a 2.93% upward movement from the same quarter last year.

HON's full-year Zacks Consensus Estimates are calling for earnings of $9.15 per share and revenue of $36.86 billion. These results would represent year-over-year changes of +4.45% and +3.93%, respectively.

Investors should also pay attention to any latest changes in 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.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 shifted 0.13% downward. At present, Honeywell International Inc. boasts a Zacks Rank of #3 (Hold).

From a valuation perspective, Honeywell International Inc. is currently exchanging hands at a Forward P/E ratio of 20.19. For comparison, its industry has an average Forward P/E of 15.72, which means Honeywell International Inc. is trading at a premium to the group.

Also, we should mention that HON has a PEG ratio of 2.34. 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. HON's industry had an average PEG ratio of 1.82 as of yesterday's close.

The Diversified Operations industry is part of the Conglomerates sector. This industry, currently bearing a Zacks Industry Rank of 158, finds itself in the bottom 38% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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