This story originally appeared on Zacks
Honeywell International Inc. (HON) closed at $217.65 in the latest trading session, marking a -0.81% move from the prior day. This move lagged the S&P 500’s daily gain of 0.08%. Meanwhile, the Dow lost 0.56%, and the Nasdaq, a tech-heavy index, lost 0.42%.
Prior to today’s trading, shares of the company had gained 4.68% over the past month. This has outpaced the Conglomerates sector’s gain of 0.4% and the S&P 500’s gain of 0.22% in that time.
Investors will be hoping for strength from Honeywell International Inc. as it approaches its next earnings release. On that day, Honeywell International Inc. is projected to report earnings of $2.08 per share, which would represent year-over-year growth of 0.48%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.73 billion, down 1.88% from the year-ago period.
Any recent changes to analyst estimates for Honeywell International Inc. should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. The Zacks Consensus EPS estimate has moved 0.85% lower within the past month. Honeywell International Inc. is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, Honeywell International Inc. is currently trading at a Forward P/E ratio of 24.51. Its industry sports an average Forward P/E of 18.42, so we one might conclude that Honeywell International Inc. is trading at a premium comparatively.
We can also see that HON currently has a PEG ratio of 2.36. 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 1.31 as of yesterday’s close.
The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 72, which puts it in the top 29% 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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