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Honeywell International Inc. (HON), with a market cap of $128.1 billion, is a global leader in aerospace, building technologies, and industrial automation. The Charlotte, North Carolina-based company offers a wide range of products and services, including aerospace technologies, energy solutions, and safety systems, serving markets worldwide.
Shares of this industrial conglomerate have underperformed the broader market over the past 52 weeks. HON has gained 3.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 21.7%. In 2024, HON’s stock declined 6.2%, compared to SPX’s 13.9% rise on a YTD basis.
Zooming in further, HON has lagged behind the Aerospace & Defense Invesco ETF’s (PPA) 26.9% returns over the past 52 weeks and a 17.4% increase on a YTD basis.
Honeywell's underperformance over the past year is mainly due to supply chain issues, inflationary pressures, and weaker demand in key segments like aerospace and building technologies. Moreover, the stock tumbled 5.2% on Jul. 25 due to a disappointing reduction in the company’s full-year earnings guidance, with adjusted EPS projected between $10.05 and $10.25. This downgrade stemmed from slower-than-expected performance in Honeywell's profitable short-cycle businesses, despite beating revenue and earnings expectations for Q2.
For the current fiscal year, ending in December, analysts expect HON's EPS to grow 10.6% year over year to $10.13. The company's earnings surprise history is promising. It beat or met the consensus estimates in each of the last four quarters.
Among the 17 analysts covering the stock, the consensus rating is a “Moderate Buy” That’s based on 11 “Strong Buy” ratings and six “Holds.”
This configuration is more bullish than three months ago, with nine “Strong Buy” ratings on the stock.
On Jul. 26, Barclays analyst Julian Mitchell maintained a “Buy” rating on Honeywell International and set a price target of $232. This new target implies a potential upside of 17.9% from current levels.
The mean price target of $226.53 represents a premium of 15.1% to HON's current levels. The Street-high price target of $250 implies a potential upside of 27.1% from the current price levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
