HON Stock Analysis — Honeywell International
Sector: Industrials
AI Verdict
Honeywell trades at 19.6x next year’s earnings while promising a huge EPS rebound, so you’re getting growth at a fair price if its entrenched industrial contracts deliver as analysts expect.
Competitive Moat
Honeywell builds automation, aerospace, and industrial control systems that are deeply embedded in customer operations, creating high switching costs. Its long-term contracts and proprietary process technologies make it hard for competitors to displace them in critical infrastructure.
Summary
A sharp 74.3% forward EPS growth estimate is drawing attention to Honeywell’s turnaround potential.
Where It Stands
Honeywell is up 6.03% over the past year, trades at 19.6x next year’s earnings (below the 20x industrials median), and its RSI of 46.2 signals a cooling-off period.
Key Metrics
- RSI: 46.2 — Neutral
- Trailing P/E: 34.2x
- Forward P/E: 19.6x
- PEG Ratio: 0.48
- Earnings Growth: +0.7%
- Revenue Growth: +0.0%
- Market Cap: $138.8B
- Dividend Yield: 0.02%
- 1-Year Return: 6.03%
- 52-Week High: $248.18
- 52-Week Low: $186.76
Analyst Consensus
22 Buy · 12 Hold · 1 Sell (35 analysts)
Bull Case
With analysts forecasting 74.3% EPS growth and a forward P/E of 19.6x, you’re paying a typical industrials price for unusually strong expected earnings momentum.
Bear Case
If the P/E reverts to the sector median but growth disappoints, a multiple compression from 34.2x trailing to 20x would erase much of the modest 6.03% one-year gain.
Catalyst to Watch
Watch for next quarter’s earnings guidance—if management reaffirms or raises the 74.3% EPS growth outlook, the stock’s forward multiple could look cheap in hindsight.