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Charlotte, North Carolina-based Honeywell International Inc. (HON) engages in aerospace technologies, building automation, energy and sustainable solutions, and industrial automation businesses. With a market cap of $147.6 billion, Honeywell has employed 95,000 workers across 79 countries in the Americas, Europe, and Indo-Pacific.
Companies worth $10 billion or more are generally described as "large-cap stocks," Honeywell fits this bill perfectly. Given the company’s numerous and widespread operations, its valuation above this mark is not surprising. Honeywell helps organizations solve the world's most complex challenges in automation, aviation and energy transition.
Honeywell International is currently trading 6.5% below its all-time high of $242.77 achieved on Nov. 12. The stock has gained 10.8% over the past three months outpacing the S&P 500 Index’s ($SPX) 9.4% gains over the same time frame.
However, when compared on a longer-term basis, the stock has underperformed the S&P 500. HON stock has gained 8.2% in 2024 and 14.8% over the past 52 weeks, lagging behind SPX’s surge of 26.8% on a YTD basis and 31.7% over the past year.
To confirm the bullish trend, HON has traded above its 200-day moving average since late October, and above its 50-day moving average since early November.
Honeywell’s stock prices observed a 5.1% dip after the release of its mixed Q3 results on Oct. 24. Executing through a challenging environment, the company delivered better-than-expected earnings. Honeywell reported an impressive 8.4% year-over-year growth in adjusted EPS of $2.58 which surpassed analysts’ estimates by 3.2%. However, its sales grew by a relatively modest 5.6% from the year-ago quarter to $9.7 billion, which fell 1.7% below Wall Street’s expectations. Observing this trend in earnings and revenues, the company reduced its full-year sales guidance while raising its earnings outlook.
Honeywell has underperformed its peer Lockheed Martin Corporation’s (LMT) 14.1% gains on a YTD basis and 15% returns over the past year.
Among the 21 analysts covering the HON stock, the consensus rating is a “Moderate Buy.” The mean price target of $237.31 represents a 4.6% premium to current price levels.
