HON stock: buy or sell?
Updated on:
August 23rd, 2019
2
Honeywell International Inc. operates as a diversified technology and manufacturing company worldwide. It operates through four segments: Aerospace; Home and Building Technologies; Performance Materials and Technologies; and Safety and Productivity Solutions.
Should I buy HON 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 choose and when is the best moment to buy them. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.None of our preferred buy setups matches with Honeywell International stock situation right now, hence this is not a suitable entry point.
| Buy setup | Elegible |
|---|---|
| New all-time high | No |
| New 52 week high | No |
| Price crossing up 200d MA | No |
| 100d MA crossing up 200d MA | No |
Is Honeywell International stock a buy?
Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness.
At Stocks2.com, we gathered 13 ratings published for HON stock in the last month. The general sentiment of these ratings is bullish for HON stock, with 11 positive ratings.| Date | Analyst / Broker | Previous rating | Current rating |
| 2019-8-2 | Cowen | n/a | Buy |
| 2019-7-9 | Barclays | n/a | Overweight |
| 2019-7-19 | Morgan Stanley | n/a | Overweight |
| 2019-7-19 | Jefferies Financial Group | n/a | Buy |
| 2019-7-19 | Credit Suisse Group | n/a | Outperform |
| 2019-7-19 | Barclays | n/a | Overweight |
| 2019-4-23 | Credit Suisse Group | n/a | Outperform |
| 2019-4-22 | Morgan Stanley | Overweight | Overweight |
| 2019-4-22 | Deutsche Bank | n/a | Buy |
| 2019-2-4 | Deutsche Bank | n/a | Buy |
| 2019-1-8 | Oppenheimer | Outperform | Market Perform |
| 2019-1-3 | Credit Suisse Group | Neutral | Outperform |
| 2019-1-10 | UBS Group | n/a | Top Pick |
HON stock analysis
Daily outlook
Shares of Honeywell International closed today at $156.51 and plummed a spooky -3.92%.
Honeywell International shares plummed -3.92% to $156.51 today. Since SMA100d and SMA200d crossed up on April, HON price slid a -8.40%. Since price and SMA100d lines crossed down on Aug 2nd, HON fell $-12.19 per share (-7.23%). On July, HON hit new all time highs, pushing higher previous ATH of $176.59 recorded on July. New ATHs are usual entry points for many trading setups as there aren't higher resistences.
Weekly outlook
Honeywell International plummed a godawful -5.16% this week. For 4 weeks in a row, price slid and lost a -9.43%.
Not so far away is the last all-time high Honeywell International marked early July. This week, Honeywell International stock crossed down the significant level of the 40-weeks moving average. Stocks below the 40-weeks moving average line are usually not recommended for average traders. Since SMA20w and SMA40w crossed up late April, HON price slid a -6.51%.
HON stock price history
HON stock historical price chart
HON stock reached all-time highs on July with a price of $177.58.
HON stock price target is $183.80
How much a stock will be priced tomorrow or next week is quite unpredictable However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. For the last month we found 10 price targets for Honeywell International stock:| Date | Analyst / Broker | Action | Previous target | Current target | Diff |
| 2019-8-2 | Cowen | Reiterates | n/a | $180.00 | - |
| 2019-7-9 | Barclays | Raises Target | $177.00 | $186.00 | 5.1% |
| 2019-7-19 | Morgan Stanley | Raises Target | $183.00 | $188.00 | 2.7% |
| 2019-7-19 | Jefferies Financial Group | Raises Target | $190.00 | $195.00 | 2.6% |
| 2019-7-19 | Credit Suisse Group | Raises Target | $185.00 | $187.00 | 1.1% |
| 2019-7-19 | Barclays | Raises Target | $186.00 | $187.00 | 0.5% |
| 2019-4-23 | Credit Suisse Group | Reiterates | $170.00 | $185.00 | 8.8% |
| 2019-4-22 | Morgan Stanley | Raises Target | $165.00 | $183.00 | 10.9% |
| 2019-4-22 | Deutsche Bank | Raises Target | $174.00 | $187.00 | 7.5% |
| 2019-2-4 | Deutsche Bank | Raises Target | n/a | $160.00 | - |
| (in average) | $178.80 | $183.80 | 3.0% |
Financials and fundamental analysis
Earnings date and Earnings per Share
Since April, when Honeywell International presented its last earnings report, it depreciated an ugly -2.96%. Unfortunately, reported EPS is not yet available in our database.| Quarter | Reporting date | Estimated EPS | Actual EPS | Surprise |
|---|---|---|---|---|
| 2017-Q2 | - | n/a | 2.03 | n/a |
| 2017-Q3 | 2017-10-20 | 1.75 | 1.75 | 0.0% |
| 2017-Q4 | 2018-01-26 | 1.84 | 1.85 | 0.5% |
| 2018-Q1 | 2018-04-20 | 1.89 | 1.95 | 3.2% |
| 2018-Q2 | 2018-07-20 | 2.01 | 2.12 | 5.5% |
| 2018-Q3 | 2018-10-19 | 1.99 | 2.03 | 2.0% |
| 2018-Q4 | 2019-02-01 | 1.88 | 1.91 | 1.6% |
| 2019-Q1 | 2019-04-18 | 1.84 | n/a | n/a |
| 2019-Q2 | - | n/a | n/a | n/a |
| 2019-Q3 | - | n/a | n/a | n/a |
Annual financial results
Compared to 2017, last anual revenues report draw a decent growth of 3.13% to $41,802.00 million USD. When comparing 2018 vs 2017, instead, profit margin (that is, the net income divided by revenues) rocketed a 12.37% to 16.18%. To have an updated view of the financial situation of Honeywell International, we have calculated the trailing twelve month (TTM) sales and income figures. TTM values are the sum of the last 4 quarters and aproximate to an annual fiscal report ending in 2019-Q1 that can be compared to 2018 fiscal year results. Annual Honeywell International TTM sales up to March 2019 were $40,294.00 and earnings were $6,742.00 million dollars. If we compare this TTM figures with the last reported annuality, we can esteem Honeywell International business evolution since December 2018: Annual sales up to March, compared to lastest yearly report, declined an unpleasant -3.61%. However, profit margin (net income/sales) stayed stable at 16.18%.| Year | Sales | YoY | Income/(margin) | YoY |
|---|---|---|---|---|
| 2013 | $39,060 M | - | $3,920 M10.0% | - |
| 2014 | $40,306 M | 3.19% | $4,239 M10.5% | 8.14% |
| 2015 | $38,581 M | -4.28% | $4,768 M12.4% | 12.48% |
| 2016 | $39,302 M | 1.87% | $4,809 M12.2% | 0.86% |
| 2017 | $40,534 M | 3.13% | $1,545 M3.8% | -67.87% |
| 2018 | $41,802 M | 3.13% | $6,765 M16.2% | 337.86% |
| TTM | $40,294 M | -3.61% | $6,742 M16.7% | -0.34% |
Quarterly financial results
Honeywell International posted $8,884.00 M in sales for 2019-Q1, a -8.69% decline compared to previous quarter. Reported quarter income marked $1,416.00 M with a profit margin of 15.94%. Profit margin slightly fell a -1.75% compared to previous quarter when profit margin was 17.69%. When comparing turnover to same quarter last year, Honeywell International sales marked a scary decrease and plunged a -14.51%. Looking back to recent quarterly results, Honeywell International posted 3 positive quarters in a row.| Quarter | Sales1 | QoQ2 | Income1/(margin) | QoQ2 |
|---|---|---|---|---|
| 2017-Q2 | $10,080 M | - | $1,390 M13.8% | - |
| 2017-Q3 | $10,120 M | 0.40% | $1,350 M13.3% | -2.88% |
| 2017-Q4 | $10,843 M | 7.14% | $-2,409 M-22.2% | -278.44% |
| 2018-Q1 | $10,392 M | -4.16% | $1,438 M13.8% | -159.69% |
| 2018-Q2 | $10,919 M | 5.07% | $1,267 M11.6% | -11.89% |
| 2018-Q3 | $10,762 M | -1.44% | $2,338 M21.7% | 84.53% |
| 2018-Q4 | $9,729 M | -9.60% | $1,721 M17.7% | -26.39% |
| 2019-Q1 | $8,884 M | -8.69% | $1,416 M15.9% | -17.72% |
Honeywell International ownership
When you are planning to buy a stock, it's worth to overview its ownership structure.Honeywell International shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 0.38% of all shares.
In case of Honeywell International stock, 77.10% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for HON stock account 0.00%, no big difference from last month.
For a better understanding, the next table shows ownership data compared to other related companies:
| HON | BA | EMR | GD | GE | |
|---|---|---|---|---|---|
| Market cap | $112.6 B | $206.5 B | $35.8 B | $54.2 B | $71.5 B |
| Total shares | 719.5 M | 582.6 M | 615.0 M | 288.9 M | 8,730.0 M |
| Float shares | 686.9 M | 562.0 M | 610.6 M | 277.4 M | 8,720.0 M |
| - Institutional holdings (%) | 77.1% | 70.6% | 74.2% | 87.8% | 58.6% |
| - Insider holdings (%) | 0.4% | 0.1% | 0.6% | 6.0% | 0.2% |
| Shares in short selling | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
HON summary
| Friday, August 23rd, 2019 | |
|---|---|
| Open | $161.48 |
| Close | $156.51 |
| Day range | $155.51 - $162.28 |
| Previous close | $162.90 |
| Session gain | -3.92% |
| Average true range | $3.51 |
| 50d mov avg | $170.40 |
| 100d mov avg | $168.48 |
| 200d mov avg | $156.13 |
| Daily pattern | lt11c |
| Weekly pattern | |
Honeywell International performance
To better understand Honeywell International performance you must becnhmark its gains with other related stocks in same sector or industry. For Honeywell International, the benchmark is made against Boeing, Emerson Electric, General Dynamics, General Electric, Lockheed Martin, Raytheon and United Technologies.| Stock | 3m | 6m | 12m |
|---|---|---|---|
| HONHoneywell Interna... | -5.63% | 3.17% | 5.85% |
| BABoeing | 0.48% | -15.42% | 3.65% |
| EMREmerson Electric | -6.11% | -13.71% | -20.70% |
| GDGeneral Dynamics | 14.98% | 9.97% | -0.47% |
| GEGeneral Electric | -13.24% | -16.09% | -31.00% |
| LMTLockheed Martin | 14.64% | 27.37% | 23.41% |
| RTNRaytheon | 4.51% | 1.34% | -4.55% |
| UTXUnited Technologi... | -2.04% | 1.30% | -1.81% |
Honeywell International competitors
We selected a few stocks to conform a list of Honeywell International competitors to review if you are interested in investing in HON:- Boeing (BA)
- Emerson Electric (EMR)
- General Dynamics (GD)
- General Electric (GE)
- Lockheed Martin (LMT)
- Raytheon (RTN)
- United Technologies (UTX)
Latest HON stock news
- Seeking AlphaHoneywell International: I Revise My Prior ViewJuly 29, 2019
- Seeking AlphaHoneywell International: The Selloff Is IrrationalOctober 30, 2018
- Seeking AlphaDrops Of Honeywell - The Idea GuideSeptember 11, 2018
- InvestorPlaceAn Increased Focus Could Bring Profits to Holders of Honeywell StockSeptember 11, 2018
- InvestorPlaceHoneywell Investors Should Give the Spinoffs a ShotAugust 27, 2018