HON stock: buy or sell
Updated on:
Apr 22nd, 2021
2
HON stock brief
- After marking new all-time highs last Friday, Honeywell closed on Wednesday at $230.50 inching a 1.39%
- Honeywell is presenting its earnings report on Friday
- 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?
"To sell or not to sell", if you are holding Honeywell stock?. Trading strategies prevent us from making impetuous decisions based on our moods or the buzz surrounding the market. We like very simple setups to guide us on when is the best moment to sell our shares. Be aware that these setups are not intended for shorting Honeywell stock
A guiding principle is that you should never mantain an investment that produces higher than expected losses at the time of purchase. The timing to sell shares must always 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 own Honeywell shares and your operation is in profit probably is not time to sell now
Honeywell ratings
In the last month, 9 ratings were published for Honeywell. General sentiment is bullish, with 8 out of 9 posting optimistic forecasts
| Brokerage firm | Rating |
|---|---|
| Mar 26th, 2021 | |
| Credit Suisse Group | Buy |
| Mar 29th, 2021 | |
| Morgan Stanley | |
| Apr 1st, 2021 | |
| Credit Suisse Group | Buy |
| Apr 6th, 2021 | |
| Barclays | Buy |
| Apr 8th, 2021 | |
| Deutsche Bank Aktiengesellschaft | Neutral → |
| Apr 9th, 2021 | |
| JPMorgan Chase & Co. | Buy |
| Apr 13th, 2021 | |
| Barclays | Buy |
| Apr 14th, 2021 | |
| Deutsche Bank Aktiengesellschaft | Neutral → |
| Apr 15th, 2021 | |
| JPMorgan Chase & Co. | Buy |
Honeywell stock analysis
In late March, the price broke out over the previous top at $213.07 on the downtrend started in December 2020. Since then, the price action resulted in a 8.18% gain.
$HON at new All-time Highs
Honeywell did it again, and marked all-time highs (ATH) last Friday at $232.35. Stock rallied fast in the last 10 sessions, smashing new all-time highs 4 times
SMAs overview
Supports and resistances
Price is at highs and there are not upper resistance levels.
The current supports are:
Bollinger bands
Since the price surpassed the upper band last Friday, the price dropped by 0.80%. The price is trading near to the upper Bollinger band, signaling some level of overbought in recent sessions. This is not a bearish indicator, as price can move in these levels for many days and weeks
Relative strength index
The RSI dropped below the overbought level of 70 on Tuesday after just crossing to the overbough zone for a single day (weak signal). The RSI reading on Wednesday was 67.68
Honeywell stock price history
Honeywell went public on Jan 2nd, 1970 at $0.75 per share1. Since then, HON stock has risen by 30,633.33%, with an average of 600.65% per year. If you had invested thousand dollars in Honeywell stock on Jan 1970, it would be valued $307,333.33 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. Banks and financial organisations post their analysis predicting how a stock will performance in the future.
The following table shows the price forecasts published by financial institutions for the last 30 days. If you are a small trader you must not buy or sell based on these projections.
There are 9 price predictions issued for Honeywell that average $236.22. That is a 2.48% than the last price ($230.50).
| Brokerage firm | Price target |
|---|---|
| Mar 26th, 2021 | |
| Credit Suisse Group | $222.00 → $224.00 |
| Mar 29th, 2021 | |
| Morgan Stanley | $220.00 → $230.00 |
| Apr 1st, 2021 | |
| Credit Suisse Group | $222.00 → $224.00 |
| Apr 6th, 2021 | |
| Barclays | $225.00 → $230.00 |
| Apr 8th, 2021 | |
| Deutsche Bank Aktiengesellschaft | $222.00 → $244.00 |
| Apr 9th, 2021 | |
| JPMorgan Chase & Co. | $200.00 → $250.00 |
| Apr 13th, 2021 | |
| Barclays | $225.00 → $230.00 |
| Apr 14th, 2021 | |
| Deutsche Bank Aktiengesellschaft | $222.00 → $244.00 |
| Apr 15th, 2021 | |
| JPMorgan Chase & Co. | $200.00 → $250.00 |
Earnings and financials
HON ($HON) is posting earnings report on Friday. Market analysts analysts estimate of $1.80, that is a 13.04% lower than Q4. Sales estimates are $8.1 billion.
If you are a shareholder of Honeywell stock, don't forget to double check your stop-loss, as financial report release day has higher than usual volatility. Check company's website to confirm time and details about the earnings call and the earnings report.
Last January, Honeywell International Inc. ($HON) posted EPS for that slightly improved analysts' expectations. Quarterly EPS was $2.07 per share versus the estimated $2.00. This Q4 report represents an earnings surprise of 3.50%. Sales resulted of $8.9 billion compared to $8.4 billion predicted by market consensus.
Compared to the same quarter last year, EPS was $2.06, so posted EPS means a gain of 0.49%. Sales inched down a -6.28% on an annualized basis in the , from $95.0B to $89.0B last quarter.Honeywell competitors
Honeywell is classified inside the Capital Goods sector and the Specialty Industrial Machinery industry, which contain industry peers.
The following are Honeywell major competitors:
| Company | Market cap | Rating | Bullish ratings1 |
|---|---|---|---|
| Honeywell ($HON) | $152.0B | Buy | 8 |
| Boeing ($BA) | $149.4B | Buy | 2 |
| General Electric ($GE) | $112.8B | | 1 |
| Lockheed Martin ($LMT) | $94.8B | Neutral | 0 |
| Emerson Electric ($EMR) | $53.1B | Neutral | 0 |
| General Dynamics ($GD) | $52.0B | Neutral | 2 |
1 In the last 30 days.
Honeywell performance
To better understand Honeywell performance you must compare its gains with other related stocks in same sector or industry.. For Honeywell, the benchmark is made against Boeing, General Electric, Lockheed Martin, Emerson Electric and General Dynamics.
| Company | 1m | 3m | 6m |
|---|---|---|---|
| Honeywell ($HON) | 9.50% | 11.90% | 34.90% |
| Boeing ($BA) | -5.40% | 11.40% | 40.20% |
| General Electric ($GE) | 3.00% | 17.20% | 81.90% |
| Lockheed Martin ($LMT) | 10.00% | 13.90% | 1.50% |
| Emerson Electric ($EMR) | 4.10% | 9.60% | 32.50% |
| General Dynamics ($GD) | 6.40% | 21.60% | 34.30% |
Disclaimer:
The thoughts contained in this post are personal and not recommendations for you to buy or sell shares. The author of this report does not know the specific circumstances of the reader, his or her financial statements or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Thoughts are posted for educative purposes onlyHON summary
| Wednesday, April 21st, 2021 | |
|---|---|
| Open | $227.13 |
| Close | $230.5 |
| Day range | $226.93 - $230.67 |
| Previous close | $227.33 |
| Session gain | 1.39% |
| Average true range | $4.15 |
| 50d mov avg | $213.06 |
| 100d mov avg | $209.76 |
| 200d mov avg | $187.61 |
| Earnings date | April 23rd, 2021 |