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Honeywell (HON) Stock Moves -0.93%: What You Should Know

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Honeywell (HON - Free Report) closed the most recent trading day at $129.46, moving -0.93% from the previous trading session. This move was narrower than the S&P 500's daily loss of 2.06%. Meanwhile, the Dow lost 1.81%, and the Nasdaq, a tech-heavy index, lost 2.99%.

Prior to today's trading, shares of the industrial conglomerate had lost 9.32% over the past month. This has lagged the Conglomerates sector's loss of 7.78% and the S&P 500's loss of 6.47% in that time.

HON will be looking to display strength as it nears its next earnings release, which is expected to be January 31, 2019. In that report, analysts expect HON to post earnings of $1.89 per share. This would mark year-over-year growth of 2.16%. Our most recent consensus estimate is calling for quarterly revenue of $9.69 billion, down 10.63% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.99 per share and revenue of $41.76 billion. These totals would mark changes of +12.38% and +3.03%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for HON. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 0.05% higher within the past month. HON is currently a Zacks Rank #4 (Sell).

Valuation is also important, so investors should note that HON has a Forward P/E ratio of 16.36 right now. This valuation marks a premium compared to its industry's average Forward P/E of 14.86.

It is also worth noting that HON currently has a PEG ratio of 1.71. 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 1.66 as of yesterday's close.

The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 148, which puts it in the bottom 42% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow HON in the coming trading sessions, be sure to utilize Zacks.com.


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