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Honeywell International Inc. (HON) Gains But Lags Market: What You Should Know

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The most recent trading session ended with Honeywell International Inc. (HON - Free Report) standing at $202.19, reflecting a +0.64% shift from the previouse trading day's closing. This move lagged the S&P 500's daily gain of 0.8%. Meanwhile, the Dow gained 1.51%, and the Nasdaq, a tech-heavy index, lost 0.01%.

Shares of the company witnessed a gain of 3.75% over the previous month, beating the performance of the Conglomerates sector with its gain of 3.33% and underperforming the S&P 500's gain of 4.14%.

Market participants will be closely following the financial results of Honeywell International Inc. in its upcoming release. The company is expected to report EPS of $2.32, up 4.04% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $9.32 billion, indicating a 1.93% upward movement from the same quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $9.93 per share and a revenue of $38.37 billion, indicating changes of +8.41% and +4.65%, respectively, from the former year.

Investors should also pay attention to any latest changes in analyst estimates for Honeywell International Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.05% decrease. Right now, Honeywell International Inc. possesses a Zacks Rank of #3 (Hold).

Looking at its valuation, Honeywell International Inc. is holding a Forward P/E ratio of 20.23. For comparison, its industry has an average Forward P/E of 18.46, which means Honeywell International Inc. is trading at a premium to the group.

It is also worth noting that HON currently has a PEG ratio of 2.32. 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 2.06 at the close of the market yesterday.

The Diversified Operations industry is part of the Conglomerates sector. With its current Zacks Industry Rank of 101, this industry ranks in the top 41% 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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