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S&P 500   3,693.23
DOW   29,590.41
QQQ   275.51
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S&P 500   3,693.23
DOW   29,590.41
QQQ   275.51
Become an Ethical Hacking and Cybercrime Expert
Sell every Stock except ONE (Ad)
Will Wall Street's Enthusiasm About Datadog Lead To Big Gains?
MarketBeat: Week in Review 9/19 – 9/23
Sell every Stock except ONE (Ad)
China using civilian ships to enhance navy capability, reach
German leader seeks energy deals, alliances on Gulf trip
Sell every Stock except ONE (Ad)
Saudi Arabia's triumphant week reclaims the West's embrace
Kim Kardashian culls Dolce & Gabbana archives for Milan show
S&P 500   3,693.23
DOW   29,590.41
QQQ   275.51
Become an Ethical Hacking and Cybercrime Expert
Sell every Stock except ONE (Ad)
Will Wall Street's Enthusiasm About Datadog Lead To Big Gains?
MarketBeat: Week in Review 9/19 – 9/23
Sell every Stock except ONE (Ad)
China using civilian ships to enhance navy capability, reach
German leader seeks energy deals, alliances on Gulf trip
Sell every Stock except ONE (Ad)
Saudi Arabia's triumphant week reclaims the West's embrace
Kim Kardashian culls Dolce & Gabbana archives for Milan show
S&P 500   3,693.23
DOW   29,590.41
QQQ   275.51
Become an Ethical Hacking and Cybercrime Expert
Sell every Stock except ONE (Ad)
Will Wall Street's Enthusiasm About Datadog Lead To Big Gains?
MarketBeat: Week in Review 9/19 – 9/23
Sell every Stock except ONE (Ad)
China using civilian ships to enhance navy capability, reach
German leader seeks energy deals, alliances on Gulf trip
Sell every Stock except ONE (Ad)
Saudi Arabia's triumphant week reclaims the West's embrace
Kim Kardashian culls Dolce & Gabbana archives for Milan show

Look at Honeywell for a Steady and Diversified Stock

Look at Honeywell for a Steady and Diversified Stock
  • Honeywell became a diversified giant through its growth by acquisition strategy
  • Despite cyclical pressures and inflationary headwinds, the Company saw 12% growth in orders
  • The Company executed $3.2 billion in stock buybacks
Diversified technology and manufacturing company Honeywell (NYSE: HON) stock is performing well trading down only (-7%) on the year. The industrial behemoth makes everything from propulsion engines, environmental control and electric power systems, aircraft parts, radar, data and software applications in its aerospace segment. It’s aircraft products are literally found inside every plane. The Company’s COVID-19 personal protection products have experienced unprecedented demand. The Company makes products throughout the technology, robotics,  health care, retail, construction, software, and safety industries.

Competition and Strong Metrics

It competes with aerospace giants like Boeing (NYSE: BA) and is benefitting from the travel recovery in this epicenter industry. It also faces competition from other industrial giants outside of aerospace like 3M (NYSE: MMM) and Emerson Electric (NYSE: EMR). The Company is stable and profitable with a 2% dividend yield and over $11 billion in cash. Despite cyclical pressures and inflationary headwinds, the Company saw 12% growth in orders with $29.5 billion in backlog, setting up for a strong second half of the year. It has the DNA of a technology company combined with a mature and seasoned manufacturing and industrial giant. Investors seeking steady performance and diversification in multiple industries to mitigate recessionary pressures may want to take a look at Honeywell shares.


Diversified Industries

Honeywell became a diversified giant through its growth by acquisition strategy. However, the pace has been calculated, slow, and steady. The Company comprised of four reporting segments including Building Technologies, Performance Materials and Technologies, Safety and Productivity Solutions, and Aerospace being the largest. It’s also a Dow Jones Industrial Average (DJIA) component stock along with 3M.

Slow But Steady Earnings

On July 19, 2022, Honeywell released its fiscal second-quarter 2022 results for the quarter ending June 2022. The Company reported an earnings-per-share (EPS) profit of $2.10 excluding non-recurring items versus consensus analyst estimates for a profit of $2.07, a $0.07) beat. Revenues grew 1.6 % year-over-year (YoY) to $8.95 billion beating analyst estimates for $8.67 billion. The wind down of Russian operations and falling COVID-related mask sales had a (-3%) impact on earnings despite the 4% YoY organic sales growth led by commercial aviation, building products, productivity solutions, advanced sensing technologies, advanced materials and the connected software business. The Company expanded segment margin by 50 bps to stay ahead of the inflation curve. The Company executed $3.2 billion in stock buybacks to trim the float down to 685 million shares and is committed to an additional $4 billion in buybacks during 2022.

Flat Guidance Setting the Bar Low

Honeywell expected fiscal full-year 2022 EPS between $8.55 to $8.80 versus $8.69 consensus analyst estimates. Full-year revenues are expected between $35.5 billion to $36.1 billion versus the $35.97 billion analyst estimates. This could be a conservative estimate to set a low bar since the Company expects a strong second half recovery. Shares may have gotten ahead of themselves, so it would be prudent to wait for opportunistic pullback levels.

Look at Honeywell for a Steady and Diversified Stock

HON Entry Levels and Targets  

Using the rifle charts on the weekly and daily time frames provides a precision view of the playing field for HON stock. The weekly rifle chart sharply reversed a breakout after rejecting hard off the $206.14 Fibonacci (fib) level. The weekly rifle chart breakdown bottomed at weekly lower Bollinger Bands (BBs) at $167.05 before staging a reversal on the weekly market structure low (MSL) buy trigger on the breakout above $182.89. The weekly 5-period moving average (MA) resistance turned back into a support as it slopes up towards the weekly 15-period MA at $186.42 as it attempts a breakout. The weekly 50-period MA resistance is falling at $200.74. The weekly upper BBs sit at $209.27. The weekly stochastic bounced up through the 20-band towards the 40-band indicating an oversold bounce. However, the daily rifle chart is overbought was the stochastic rides above the 90-band, which means its best not to chase shares. The daily uptrend has a rising 5-period MA support testing at $191.37 as the $192.02 fib has been keeping shares capped. The daily 200-period MA resistance sits at $196.85 and daily upper BBs sit at $202.87. Prudent investors can watch for the daily stochastic to peak and reverse to opportunistic pullback levels at the $186.20 fib, $182.89 weekly MSL trigger, $177.91 fib, $174.42, $167.35 fib/swing low, and the $161.79 fib. Upside targets range from the $202.52 level up towards the $223.69 fib level.  

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Honeywell International (HON)
2.6758 of 5 stars
$171.38-1.1%2.29%23.38Moderate Buy$210.08
Boeing (BA)
2.1626 of 5 stars
$131.26-5.4%N/A-14.67Moderate Buy$218.07
3M (MMM)
2.5894 of 5 stars
$112.99-1.0%5.27%15.78Hold$147.43
Emerson Electric (EMR)
2.9292 of 5 stars
$73.84-2.2%2.79%13.98Moderate Buy$98.77
Compare These Stocks  Add These Stocks to My Watchlist 

Should you invest $1,000 in Honeywell International right now?

Before you consider Honeywell International, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Honeywell International wasn't on the list.

While Honeywell International currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

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Jea Yu

About Jea Yu

Contributing Author: Trading Strategies

With over 20 years of active participation and analysis of the US equities, options and futures markets, Mr. Yu brings fresh insights into the workings of the financial markets. He has published four books by esteemed publishers McGraw-Hill, John Wiley & Sons, Marketplace Books and Bloomberg Press. His brainchild, the Underground Trader, was voted Forbes Best of the Web for four consecutive years under the active trader category. He has been a featured speaker all over the country at various expos and seminars who enjoys a standing-room-only reception in the largest convention halls from New York to Las Vegas. He has been quoted and featured in USA Today, Wall Street Journal, Traders Magazine and the Financial Times and various trade publications like Stocks & Commodities, Active Trader and Online Investor. Mr. Yu has a B.A. in Liberal Arts and minor in Business Administration from the University of Maryland.
Contact Jea Yu via email at JeaYu21@gmail.com.
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