Honeywell Stock: Is HON Outperforming the Industrial Sector?

Industrials (names A - I) - Honeywell International Inc sign- by testing via Shutterstock

Honeywell International Inc. (HON), headquartered in Charlotte, North Carolina, is a leading global provider of diversified technology and manufacturing solutions. With a market cap of $135.77 billion, it is known for its innovative products and substantial market presence. Honeywell operates across various sectors, including aerospace, building technologies, performance materials and technologies, and safety and productivity solutions. Honeywell's competitors include General Electric Company (GE), a major player in industrial automation and technology.

Companies worth $10 billion or more are considered "large-cap" stocks, and Honeywell rightly fits into this category. Its market cap signifies its substantial size, stability, and influence across diverse industries, including aerospace, building technologies, and industrial automation. As an industry leader, HON has prioritized innovation and self-reliance through numerous acquisitions and strategic partnerships. 

Shares of HON climbed to a new high of $211.63 in the last trading session, with HON up 3.8% over the last three months. Over this same period, the Industrial Select Sector SPDR Fund (XLI) has declined marginally.

In the long term, HON shares have experienced a marginal decline YTD. However, they have gained 3.2% over the past 52 weeks. In comparison, the XLI gained 6.8% in 2024 and achieved 16.7% over the past year.

To confirm the bullish price trend, HON has been trading above its 200-day moving average since early May and above its 50-day moving average since late May.

Honeywell reported a strong Q1 result, with earnings of $2.25 per share on revenue of $9.11 billion, surpassing Wall Street expectations. The company's operating margin improved to 20.4%, driven by strength in commercial aviation, defense, and space, and its backlog increased by 6% to $32 billion. Despite the earnings beat, shares fell after the report, as the company's guidance indicated a potential downside for the next quarter. 

Highlighting the contrast in performance, HON's competitor, GE, has outperformed HON and XLI, gaining 89.5% over the past 52 weeks. 

Given its recent outperformance, analysts are moderately optimistic about HON's prospects. The stock has a consensus rating of "Moderate Buy" from 16 analysts in coverage. The mean price target of $223.33 reflects a 7.1% premium over current levels.

More Stock Market News from Barchart
On the date of publication, Rashmi Kumari 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.