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Honeywell International Inc. (HON) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Honeywell International Inc. (HON - Free Report) closed at $229.20, marking a -0.67% move from the previous day. This change lagged the S&P 500's daily loss of 0.36%.

Coming into today, shares of the company had gained 2.01% in the past month. In that same time, the Conglomerates sector gained 1.75%, while the S&P 500 gained 0.75%.

HON will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.92, up 52.38% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.6 billion, up 15.08% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.01 per share and revenue of $34.8 billion. These totals would mark changes of +12.82% and +6.63%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for HON. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.29% higher. HON currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, HON is holding a Forward P/E ratio of 28.79. This represents a premium compared to its industry's average Forward P/E of 21.59.

It is also worth noting that HON currently has a PEG ratio of 2.72. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Diversified Operations was holding an average PEG ratio of 1.59 at yesterday's closing price.

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 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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