HON stock: buy or sell?
Updated on:
September 20th, 2019
4
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?
You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. Following a trading plan helps to make decisions easier, quicker and with less hesitations. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.Currently, Honeywell International stock doesn't match any of these trading strategies, so our recommendation is not to buy.
| 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 posted by financial analysts to indicate a particular stock's attractiveness.
At Stocks2.com, we collected 14 ratings published for HON stock in the last 30 days. The general sentiment of these ratings is bullish for HON stock, with 12 positive ratings.| Date | Analyst / Broker | Previous rating | Current rating |
| 2019-9-9 | Citigroup | n/a | Buy |
| 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
Honeywell International shares raised 0.97% to $168.38 today.
Honeywell International shares raised 0.97% to $168.38 today. Since price and SMA100d lines crossed down on September 12th, HON fell $-2.90 per share (-1.69%). 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 ended this week at $168.38 and remained constant a tiny 0.40%. By mid August HON collapsed a scary -5.46% in just one week.
Honeywell International is in a clear downtrend, marking successive falling tops and bottoms. Now is trading in between the - range. There is an opportunity to rebound and reverse this situation if price can hold above the level. Not so far away is the last price record Honeywell International marked early July. Late August HON price bounced up over the SMA of 40 weeks that acted as support stopping new slides. Late April, SMA20w and SMA40w crossed up triggering a rise of 0.59%.
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 $185.00
Nobody can reliably foresee how stock prices may evolve in the future. 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. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. We have 11 price forecasts for Honeywell International stock released in the last month:| Date | Analyst / Broker | Action | Previous target | Current target | Diff |
| 2019-9-9 | Citigroup | Raises Target | $189.00 | $197.00 | 4.2% |
| 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) | $179.90 | $185.00 | 3.0% |
Financials and fundamental analysis
Earnings date and Earnings per Share
Since April, when Honeywell International presented its last earnings report, it . As soon as we get its actual EPS from the earnings report, we will update this report.| 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
In 2018, Honeywell International annual sales gained a fine 3.13% to $41,802.00 M dollars from $40,534.00 marked in 2017. When comparing 2018 vs 2017, however, profit margin (that is, the net income divided by revenues) skyrocketed a 12.37% to 16.18%. To have an up to date 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 ugly -3.61%. Regarding profit margin, Honeywell International remained stable 0.55% to 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% less compared to previous quarter. Reported quarter income marked $1,416.00 M with a profit margin of 15.94%. Profit margin depreciated 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 spooky correction and collapsed 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 shares of a stock, it's always worth to review 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 context understanding, the following table shows ownership data compared to other related stocks:
| HON | BA | EMR | GD | GE | |
|---|---|---|---|---|---|
| Market cap | $121.2 B | $216.3 B | $40.1 B | $54.3 B | $82.2 B |
| Total shares | 719.5 M | 562.7 M | 615.1 M | 288.8 M | 8,730.0 M |
| Float shares | 687.1 M | 562.0 M | 610.8 M | 277.4 M | 8,710.0 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, September 20th, 2019 | |
|---|---|
| Open | $167.60 |
| Close | $168.38 |
| Day range | $166.70 - $168.70 |
| Previous close | $166.77 |
| Session gain | 0.97% |
| Average true range | $2.54 |
| 50d mov avg | $167.35 |
| 100d mov avg | $168.89 |
| 200d mov avg | $158.20 |
| Daily pattern | lt02a |
| Weekly pattern | lt02a |
Honeywell International performance
Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. In the following table, we compare Honeywell International performance to Boeing, Emerson Electric, General Dynamics, General Electric, Lockheed Martin, Raytheon and United Technologies:| Stock | 3m | 6m | 12m |
|---|---|---|---|
| HONHoneywell Interna... | -2.92% | 9.13% | 7.19% |
| BABoeing | 4.03% | 7.42% | 5.53% |
| EMREmerson Electric | 0.15% | -0.94% | -13.86% |
| GDGeneral Dynamics | 6.63% | 14.76% | -6.05% |
| GEGeneral Electric | -9.94% | -5.42% | -19.14% |
| LMTLockheed Martin | 10.11% | 35.46% | 19.67% |
| RTNRaytheon | 9.44% | 11.93% | 0.01% |
| UTXUnited Technologi... | 7.45% | 11.15% | -0.94% |
Honeywell International competitors
We picked a few stocks to conform a list of Honeywell International competitors to check 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