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

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Honeywell International Inc. (HON - Free Report) closed the most recent trading day at $170.95, moving -1.07% from the previous trading session. This change lagged the S&P 500's 0.84% loss on the day. Elsewhere, the Dow lost 0.69%, while the tech-heavy Nasdaq lost 0.05%.

Heading into today, shares of the company had lost 3.84% over the past month, outpacing the Conglomerates sector's loss of 5% and lagging the S&P 500's gain of 2.02% in that time.

Wall Street will be looking for positivity from Honeywell International Inc. as it approaches its next earnings report date. This is expected to be July 28, 2022. The company is expected to report EPS of $2.03, up 0.5% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.68 billion, down 1.41% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $8.64 per share and revenue of $35.74 billion, which would represent changes of +7.2% and +3.92%, respectively, from the prior year.

Any recent changes to analyst estimates for Honeywell International Inc. should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.45% lower within the past month. Honeywell International Inc. is currently sporting a Zacks Rank of #4 (Sell).

Looking at its valuation, Honeywell International Inc. is holding a Forward P/E ratio of 20. For comparison, its industry has an average Forward P/E of 14.89, which means Honeywell International Inc. is trading at a premium to the group.

Meanwhile, HON's PEG ratio is currently 2.09. 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 1.46 as of yesterday's close.

The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 172, which puts it in the bottom 32% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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