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Honeywell International Inc. (HON) Laps the Stock Market: Here's Why

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Honeywell International Inc. (HON - Free Report) closed the most recent trading day at $200.13, moving +1.1% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.88%. At the same time, the Dow added 0.54%, and the tech-heavy Nasdaq gained 1.35%.

The the stock of company has fallen by 2.44% in the past month, leading the Conglomerates sector's loss of 5.28% and undershooting the S&P 500's gain of 0.64%.

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 February 1, 2024. The company's upcoming EPS is projected at $2.60, signifying a 3.17% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $9.7 billion, indicating a 5.63% increase compared to the same quarter of the previous year.

Investors might also notice recent changes to analyst estimates for Honeywell International Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.13% lower within the past month. Honeywell International Inc. is currently a Zacks Rank #3 (Hold).

From a valuation perspective, Honeywell International Inc. is currently exchanging hands at a Forward P/E ratio of 19.88. This represents a premium compared to its industry's average Forward P/E of 15.44.

We can additionally observe that HON currently boasts a PEG ratio of 2.33. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Diversified Operations industry stood at 2.22 at the close of the market yesterday.

The Diversified Operations industry is part of the Conglomerates sector. With its current Zacks Industry Rank of 60, this industry ranks in the top 24% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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