Honeywell International Inc. (HON) Lags Market with 1.03% Decline: What to Expect from Earnings Release

Honeywell International Inc. (HON) closed at $221.79 in the latest trading session, marking a -1.03% decrease from the previous day. This decline lagged behind the S&P 500's 0.84% loss on the day, while the Dow lost 0.7% and the Nasdaq, a tech-heavy index, fell 0.91%. Prior to today's trading, shares of the company had gained 0.54%, outpacing the Conglomerates sector's 0% loss and lagging the S&P 500's 1.44% gain. The investment community is closely monitoring Honeywell International Inc.'s upcoming earnings release, which is expected to report EPS of $2.63, a 5.62% increase from the prior-year quarter. Meanwhile, the current consensus estimate forecasts revenue to be $10.01 billion, indicating a 4.48% growth compared to the corresponding quarter of the prior year. Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.37 per share and revenue of $40.2 billion, marking changes of +4.85% and +4.41%, respectively, from last year. It's important for investors to be aware of any recent modifications to analyst estimates for Honeywell International Inc., as these changes often reflect the shifting dynamics of short-term business patterns. Our research suggests that these changes in estimates have a direct relationship with upcoming 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, which varies between #1 (Strong Buy) and #5 (Strong Sell). The Zacks Rank system has 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 past month, the Zacks Consensus EPS estimate has shifted 0.13% downward, and Honeywell International Inc. is currently a Zacks Rank #3 (Hold). Digging into valuation, Honeywell International Inc. currently has a Forward P/E ratio of 21.6, which expresses a premium compared to the average Forward P/E of 16.08 of its industry. One should further note that HON currently holds a PEG ratio of 2.61, which is similar to the widely-used P/E ratio but also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Diversified Operations industry was having an average PEG ratio of 1.99. The Diversified Operations industry is part of the Conglomerates sector and currently holds a Zacks Industry Rank of 68, positioning it in the top 28% of all 250+ industries. 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.