/Honeywell%20International%20Inc%20operations%20facility%20by-JHVEPhoto%20via%20iStock.jpg)
Valued at a market cap of $135.4 billion, Honeywell International Inc. (HON) is a leading global diversified technology and manufacturing company. The Charlotte, North Carolina-based company offers advanced solutions ranging from aerospace systems to sustainable energy technologies.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks and Honeywell International fits this criterion perfectly. Honeywell helps organizations tackle complex challenges in aerospace, building automation, energy transition, and industrial automation, impacting over 10 million buildings and nearly every commercial and defense aircraft.
Despite that, the industrial conglomerate has slipped 7.2% from its 52-week high of $220.79 reached in July. Shares of HON have gained 1.2% over the past three months, underperforming The Industrial Select Sector SPDR Fund's (XLI) rise of 5.4% during the same period.
Longer term, HON's shares have dropped 2.3% on a YTD basis, compared to XLI's 12.8% rise. Over the past 52 weeks, Honeywell has surged 8.7%, lagging behind XLI's 18.2% gain over the same period.
However, HON has been trading above both its 50-day and 200-day moving averages since May with few fluctuations but has dipped below the 50-day moving average since late July.
Honeywell's underperformance has been exacerbated by supply chain constraints and lower demand in the Industrial Automation segment. Additionally, despite reporting stronger-than-expected Q2 results with revenue of $9.6 billion and adjusted EPS of $2.49, the stock tumbled on Jul. 25. The management's downward revision of full-year earnings guidance to $10.05 per share - $10.25 per share, due to slower-than-expected acceleration in profitable short-cycle businesses, led to a 5.2% drop in share price.
Also, Honeywell International has underperformed its rival, GE Aerospace (GE), with GE experiencing substantial gains of 60.8% on a YTD basis and 79.7% over the past 52 weeks.
Despite the stock's underwhelming price action, analysts are cautiously optimistic about the stock's prospects. The stock has a consensus rating of “Moderate Buy” from the 17 analysts covering it, and the mean price target of $226.53 suggests a premium of 10.6% to current 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.
