HON stock: buy or sell
Updated on:
Jan 25th, 2021
2
HON stock brief
- Honeywell closed last Friday at $202.25 after going down a -1.45%.
- The price is currently below the lower Bollinger band, which often indicates a short-term bounce that you better not try to trade
- Honeywell International Inc. operates as a diversified technology and manufacturing company worldwide.
Should I buy Honeywell stock?
Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $HON stock a buy?
Currently, Honeywell stock doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean $HON will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems
Should I sell Honeywell stock?
When you own stock shares with some profit, it's really hard to decide the best moment to sell and get your benefits. Like when we have to buy shares, deciding when is appropiate to sell is not a capricious decision, and we must adhere our own trading style. When selling, as well as buying, detailed strategies are very simple to follow but are only applicable for selling shares in your porfolio, not for shorting Honeywell stock
As a rule of thumb, you should not mantain an operation that yields greater losses than those expected upon purchase. The timing to sell shares always has to be determined by the stop-loss (automatic or manual)
Is it time to sell Honeywell stock?
Currently, Honeywell stock doesn't match any of our preferred sell setups, so if you hold Honeywell shares and your operation is in profit probably is not time to sell now
Honeywell ratings
In the last month, just one brokerage rating was published for Honeywell
| Brokerage firm | Rating |
|---|---|
| Jan 15th, 2021 | |
| UBS Group | Neutral |
Honeywell stock analysis
SMAs overview
Supports and resistances
The current resistances are:
The current support levels are:
Bollinger bands
The actual distance between the upper and lower bands is less than 5%, indicating that volatility is at very low levels. The tightness of the Bollinger bands is frequently a sign of a sharp price movement (up or down), so we must be on alert and manage our buy or sell orders accordingly
Relative strength index
The RSI dropped below the overbought level of 70 in mid-December after just crossing to the overbough zone for 1 day (weak signal). The RSI reading last Friday was 39.95. Since then, Honeywell shares tanked a 5.77%
Honeywell stock price history
Honeywell went public priced at an adjusted price1 of $0.75 on Jan 1970. Since then, HON stock has risen by 26,866.67%, with an average of 526.80% per year. If you had invested $1,000USD in Honeywell stock on the IPO, it would worth $269,666.67 today.
1: Adjusted price after possible price splits or reverse-splits
Price target for Honeywell stock
How much a stock will be priced tomorrow or next week is quite unpredictable. However, many stock price forecasts are published every day by banks, financial institutions and independent analysts.
Along with buy or sell recommendations, brokerage institutions publish their price predictions based on the stock price action and the company fundamental data. Most of these predictions follow the release of new financial information by the company, and usually. Again, these estimates are not direct recommendations for individual investors and should not be trusted blindly.
There is just one price target available for Honeywell that forecasts a price of $216.00.
| Brokerage firm | Price target |
|---|---|
| Jan 15th, 2021 | |
| UBS Group | $180.00 → $216.00 |
Earnings and financials
Honeywell ($HON) had the quarterly earnings call and released the report last October. HON surpassed analysts estimates and presented of $1.56, that is a 4.70% improvement versus the initial estimates of $1.49. Nevertheless, reported revenues of $7.8 billion were in line with market forecasts.
Same quarter last year, reported EPS was $2.08, so current EPS is a loss of -25.00%. Looking at sales, figures dropped a -14.19% compared to $90.9B same quarter last year.HON ($HON) is hosting the Q4 earnings call on Friday. Expected for this quarter is $2.00, compared to $1.56 that was reported for Q3.
Earnings reporting day has a more than usual risk for stock investors as the data disclosed can soar and sink the price with very low volume and not respecting your buy or stop-loss orders. Honeywell's website probably has additional details.
Honeywell performance
| Company | 1m | 3m | 6m |
|---|---|---|---|
| Honeywell ($HON) | -4.00% | 17.00% | 32.70% |
Disclaimer:
The thoughts published in this post are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this document does not have any knowledge of the individual scenarios of the reader, his or her own finances or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Comments are posted for learning purposes onlyHON summary
| Friday, January 22nd, 2021 | |
|---|---|
| Open | $204.26 |
| Close | $202.25 |
| Day range | $201.39 - $204.46 |
| Previous close | $205.23 |
| Session gain | -1.45% |
| Average true range | $4.19 |
| 50d mov avg | $208.12 |
| 100d mov avg | $188.35 |
| 200d mov avg | $166.42 |
| Earnings date | January 29th, 2021 |