Here's Why Honeywell International Inc. (HON) Fell More Than Broader Market

Honeywell International Inc. (HON) ended the recent trading session at $233.40, demonstrating a -2.52% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 1.52%. Elsewhere, the Dow saw a downswing of 1.56%, while the tech-heavy Nasdaq depreciated by 1.78%.

Heading into today, shares of the company had lost 1.34% over the past month, outpacing the Conglomerates sector's loss of 5.39% and the S&P 500's loss of 2.25%.

Analysts and investors alike will be keeping a close eye on the performance of Honeywell International Inc. in its upcoming earnings disclosure. The company is forecasted to report an EPS of $2.34, showcasing a 6.77% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $9.27 billion, indicating a 5.58% decrease compared to the same quarter of the previous year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $10.41 per share and revenue of $39.4 billion, indicating changes of +6.44% and -2.33%, respectively, compared to the previous year.

Any recent changes to analyst estimates for Honeywell International Inc. should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 past month, there's been a 0.15% rise in the Zacks Consensus EPS estimate. Honeywell International Inc. is currently a Zacks Rank #3 (Hold).

In terms of valuation, Honeywell International Inc. is presently being traded at a Forward P/E ratio of 23.01. This signifies a premium in comparison to the average Forward P/E of 16.97 for its industry.

It is also worth noting that HON currently has a PEG ratio of 3.51. 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. By the end of yesterday's trading, the Diversified Operations industry had an average PEG ratio of 1.29.

The Diversified Operations industry is part of the Conglomerates sector. With its current Zacks Industry Rank of 192, this industry ranks in the bottom 22% of all industries, numbering over 250.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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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This article originally published on Zacks Investment Research (zacks.com).

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