It's a good decade so far for Honeywell International. Its stock rose from a 101.08 low in late March 2020 to above 230 Monday, a more than 100% gain. Its stock has popped more than 12% just this month.
The diversified manufacturer provides many of the working parts for various recent technology advances including the Internet of Things, cloud computing and the latest, artificial intelligence systems.
On Monday, the Relative Strength (RS) Rating for Honeywell stock rose from 70 to 73, putting it closer to a key benchmark. Market research proves that the best stocks often have an 80 or higher RS Rating in the early stages of their moves. See if Honeywell International can continue to show price strength and clear that threshold.
Honeywell Stock A Favorite Of Big Money Investors
Among its other key ratings Honeywell has an adequate 77 Composite Rating and 75 EPS Rating, according to MarketSurge. One standout rating is its A- Accumulation/Distribution Rating on an A+ to E scale. The A- rating shows that insurance funds, mutual funds and the like are fairly heavy buyers of its stock.
Charlotte, N.C.-based Honeywell provides products and services to a variety of industries including aviation, energy systems, construction, transportation and industrial automation. There really are very few, if any, industries that it doesn't touch. Among its products are systems for jetliners and spacecraft, fire safety systems in buildings, natural gas transmission systems and literally hundreds of other products and services.
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Honeywell posted 8% EPS growth in its most recent report, to $2.58, while sales grew 6% to $9.73 billion. Its earnings growth has held steady in the 8%-9% range this past year, while its revenue growth rate accelerated from 3% four quarters ago to 6%.
Analyst consensus is for earnings and revenue growth rates to continue rising. According to FactSet, the Street expects EPS to grow 7% this quarter on a 9% hike in revenue.
Shoots Up, Passes Buy Point, Dips Back Into It
Honeywell International stock formed a cup base from July to October and rose above the 220.79 buy point on Oct. 18. It's soared to 242.77, out of the buy zone, then consolidated to trade at 230.70 Monday afternoon, up for the day and back in the buy zone. See if the stock goes on to form a sound pattern that could kick off a new price move.
Honeywell holds the No. 5 rank among its peers in the 20-stock Diversified Operations industry group. Crane is the top-ranked stock in the group.
IBD's unique Relative Strength Rating measures technical performance by showing how a stock's price movement over the last 52 weeks compares to that of the other stocks in our database.
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