Honeywell International Inc. (HON) closed the most recent trading day at $217.43, moving -1.34% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.25%. On the other hand, the Dow registered a loss of 0.02%, and the technology-centric Nasdaq decreased by 0.52%.
Heading into today, shares of the company had lost 8.9% over the past month, lagging the Conglomerates sector's loss of 0.2% and the S&P 500's gain of 4.34%.
The upcoming earnings release of Honeywell International Inc. will be of great interest to investors. It is anticipated that the company will report an EPS of $2.15, marking a 61.88% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.09 billion, down 51.13% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $8.25 per share and a revenue of $20.35 billion, representing changes of -57.82% and -49.54%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Honeywell International Inc. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Honeywell International Inc. currently has a Zacks Rank of #5 (Strong Sell).
Investors should also note Honeywell International Inc.'s current valuation metrics, including its Forward P/E ratio of 26.71. This expresses a premium compared to the average Forward P/E of 13.01 of its industry.
One should further note that HON currently holds a PEG ratio of 4.94. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. HON's industry had an average PEG ratio of 1.53 as of yesterday's close.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 183, putting it in the bottom 26% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during 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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