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Honeywell International Inc. (HON) Falls More Steeply Than Broader Market: What Investors Need to Know

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Honeywell International Inc. (HON - Free Report) closed the most recent trading day at $183.47, moving -1.53% from the previous trading session. This move lagged the S&P 500's daily loss of 1.34%. Meanwhile, the Dow lost 0.98%, and the Nasdaq, a tech-heavy index, lost 1.62%.

The the stock of company has fallen by 4.66% in the past month, leading the Conglomerates sector's loss of 7.51% and undershooting the S&P 500's loss of 1.57%.

The investment community will be closely monitoring the performance of Honeywell International Inc. in its forthcoming earnings report. The company is scheduled to release its earnings on October 26, 2023. The company is predicted to post an EPS of $2.22, indicating a 1.33% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $9.21 billion, up 2.87% from the prior-year quarter.

HON's full-year Zacks Consensus Estimates are calling for earnings of $9.15 per share and revenue of $36.81 billion. These results would represent year-over-year changes of +4.45% and +3.8%, respectively.

Any recent changes to analyst estimates for Honeywell International Inc. should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.15% lower. At present, Honeywell International Inc. boasts a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Honeywell International Inc. has a Forward P/E ratio of 20.37 right now. This indicates a premium in contrast to its industry's Forward P/E of 15.86.

Meanwhile, HON's PEG ratio is currently 2.41. 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 average PEG ratio for the Diversified Operations industry stood at 1.85 at the close of the market yesterday.

The Diversified Operations industry is part of the Conglomerates sector. With its current Zacks Industry Rank of 63, this industry ranks in the top 25% of all industries, numbering over 250.

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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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