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Why the Market Dipped But Honeywell International Inc. (HON) Gained Today

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In the latest market close, Honeywell International Inc. (HON - Free Report) reached $226.88, with a +0.01% movement compared to the previous day. The stock outpaced the S&P 500's daily loss of 0.09%. Elsewhere, the Dow gained 0.04%, while the tech-heavy Nasdaq lost 0.1%.

Shares of the company have appreciated by 0.08% over the course of the past month, outperforming the Conglomerates sector's loss of 5.11% and the S&P 500's loss of 0.29%.

The investment community will be paying close attention to the earnings performance of Honeywell International Inc. in its upcoming release. It is anticipated that the company will report an EPS of $2.31, marking a 11.15% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $9.88 billion, up 4.63% from the prior-year quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $9.73 per share and revenue of $38.46 billion. These totals would mark changes of +6.22% and +4.92%, 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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 4.57% fall in the Zacks Consensus EPS estimate. Honeywell International Inc. presently features a Zacks Rank of #3 (Hold).

In the context of valuation, Honeywell International Inc. is at present trading with a Forward P/E ratio of 23.31. This valuation marks a premium compared to its industry's average Forward P/E of 16.79.

Meanwhile, HON's PEG ratio is currently 2.82. 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. The Diversified Operations industry currently had an average PEG ratio of 1.97 as of yesterday's close.

The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 203, putting it in the bottom 20% 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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