Honeywell International Sees Mixed Performance Amid Market Gains
Honeywell International Inc. (HON), with a market capitalization of $141 billion, operates in the aerospace technologies, industrial automation, building automation, and energy sectors across the globe. Established in 1885, the Charlotte, North Carolina-based firm has a significant presence in the aerospace industry, where commercial aviation and defense are key revenue sources.
Despite its established footprint, Honeywell shares have underperformed compared to the broader market over the past year and into 2025. Over the last 52 weeks, HON stock has increased by 7.1%, while it has seen a year-to-date decline of 3.4%. In contrast, the S&P 500 Index ($SPX) has gained 12.7% in the same period, with modest growth expected in 2025.
Comparative Analysis with Sector Performance
Narrowing the scope, HON’s performance has also lagged behind the Industrial Select Sector SPDR Fund (XLI), which rose by 12.9% over the past year and 7.2% year-to-date.
Strong Q1 Earnings Report
Following its Q1 earnings release on April 29, Honeywell shares surged 5.4%. The company reported a 7.9% increase in year-over-year revenue, totaling $9.8 billion, which exceeded analysts’ expectations by 2.5%. Additionally, Honeywell’s adjusted earnings per share (EPS) reached $2.51, outperforming Wall Street forecasts by 13.6%.
Future Projections
For the current year ending in December, analysts forecast a 5.1% year-over-year EPS growth to $10.39. Impressively, Honeywell has exceeded analysts’ consensus estimates in each of the last four quarters.
Analyst Ratings Insights
Among the 22 analysts providing coverage for Honeywell, the consensus rating stands at “Moderate Buy,” consisting of 12 “Strong Buy” ratings and 10 “Holds.” This rating reflects a slightly more optimistic outlook than three months ago, when only 11 analysts classified the stock as a “Strong Buy.”
On April 30, Wells Fargo & Company (WFC) analyst Joseph O’Dea maintained an “Equal Weight” stance on Honeywell and increased its price target from $205 to $225. The mean price target among analysts for HON is currently set at $237.60, suggesting an 8.9% premium from existing market prices. The highest target of $300 indicates a significant upside potential of 37.5% from current levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
