Stock of the Day

January 24, 2020

Honeywell International (HON)

$211.94
+$0.59 (+0.3%)
Market Cap: $137.36B

About Honeywell International

Honeywell International Inc. engages in the aerospace technologies, building automation, energy and sustainable solutions, and industrial automation businesses in the United States, Europe, and internationally. The company's Aerospace segment offers auxiliary power units, propulsion engines, integrated avionics, environmental control and electric power systems, engine controls, flight safety, communications, navigation hardware, data and software applications, radar and surveillance systems, aircraft lighting, advanced systems and instruments, satellite and space components, and aircraft wheels and brakes; spare parts; repair, overhaul, and maintenance services; and thermal systems, as well as wireless connectivity services. Its Honeywell Building Technologies segment provides software applications for building control and optimization; sensors, switches, control systems, and instruments for energy management; access control; video surveillance; fire products; and installation, maintenance, and upgrades of systems. The company's Performance Materials and Technologies segment offers automation control, instrumentation, and software and related services; catalysts and adsorbents, equipment, and consulting; and materials to manufacture end products, such as bullet-resistant armor, nylon, computer chips, and pharmaceutical packaging, as well as provides materials based on hydrofluoro-olefin technology. Its Safety and Productivity Solutions segment provides personal protective equipment, apparel, gear, and footwear; gas detection technology; custom-engineered sensors, switches, and controls for sensing and productivity solution; cloud-based notification and emergency messaging; mobile devices and software; custom-engineered sensors, switches, and controls; and data and asset management productivity solutions. Honeywell International Inc. was founded in 1885 and is headquartered in Charlotte, North Carolina.

Honeywell International Bull Case

Here are some ways that investors could benefit from investing in Honeywell International Inc.:

  • The company recently reported an earnings per share (EPS) of $2.47, exceeding the consensus estimate of $2.37, indicating strong financial performance and effective management.
  • Honeywell International Inc. has a solid dividend yield of 2.14%, providing investors with a reliable income stream through dividends, which are payments made to shareholders from the company's profits.
  • Analysts have a consensus rating of "Moderate Buy" for the stock, with an average price target of $248.71, suggesting potential for price appreciation.
  • The company has a robust return on equity of 35.78%, reflecting its ability to generate profits from shareholders' investments efficiently.
  • Recent upgrades from analysts, including a "buy" rating from Deutsche Bank Aktiengesellschaft, indicate positive sentiment and confidence in the company's future performance.

Honeywell International Bear Case

Investors should be bearish about investing in Honeywell International Inc. for these reasons:

  • Several analysts have recently downgraded their target prices for Honeywell International Inc., indicating a cautious outlook on the stock's short-term performance.
  • The company's payout ratio is currently 51.89%, which means it is distributing a significant portion of its earnings as dividends. This could limit the funds available for reinvestment in growth opportunities.
  • Insider selling activity has been noted, with a vice president selling a substantial number of shares, which may raise concerns about the company's future prospects from those within the organization.
  • Despite a strong EPS report, the overall market conditions and economic uncertainties could impact the company's performance and stock price negatively.
  • Honeywell International Inc. operates in competitive sectors, and any shifts in market dynamics or technological advancements by competitors could pose risks to its market position.

Recent News