This story originally appeared on Zacks
Honeywell International Inc. (HON) closed the most recent trading day at $189.84, moving +0.68% from the previous trading session. This move outpaced the S&P 500’s daily loss of 0.24%. Elsewhere, the Dow lost 0.49%, while the tech-heavy Nasdaq lost 0.04%.
Coming into today, shares of the company had lost 6.65% in the past month. In that same time, the Conglomerates sector lost 1.44%, while the S&P 500 gained 0.73%.
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 $1.87 per share. This would mark a year-over-year decline of 2.6%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.41 billion, down 0.48% from the year-ago period.
HON’s full-year Zacks Consensus Estimates are calling for earnings of $8.64 per share and revenue of $36.17 billion. These results would represent year-over-year changes of +7.2% and +5.17%, respectively.
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. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 3.73% lower. Honeywell International Inc. is currently a Zacks Rank #4 (Sell).
Looking at its valuation, Honeywell International Inc. is holding a Forward P/E ratio of 21.82. This valuation marks a premium compared to its industry’s average Forward P/E of 17.44.
It is also worth noting that HON currently has a PEG ratio of 2.28. 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 1.48 as of yesterday’s close.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 105, putting it in the top 42% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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