Honeywell (HON) drops to a Hold this week based on the most current relative pricing of its shares and stock market rankings. Honeywell International Inc (NYSE:HON) Hold recommendation, which was recently downgraded from a Buy to Hold, derives some benefit of being in a sector that is ranked above average in investment attractiveness; however, its industry group is ranked below average in attractiveness which may counterbalance this to a degree. Influencing this recommendation are analytical scoring that is below average, a ranking in the company's industry group that is in the third quarter, a ranking in its sector group that is in the middle third, and a numerical calculation of risk/reward that is better than average. The shares have been downgraded from a Buy to a Hold in the last week.
HON is one of the 278 companies in the GICS Producer Manufacturing sector and is a component of the 13 company Industrial Conglomerates GICS industry group within this sector. The market value of HON is $112.8 billion which falls in the top quarter of its industry group HON's Portfolio Grader score ranks 9 among the 13 companies in this industry group.
Currently, Portfolio Grader ranks the Producer Manufacturing sector number 9 among the 20 sectors in its universe putting it in the second quartile of all the GICS sectors. The Industrial Conglomerates industry group is ranked 85 among the 129 industry groups within the GICS sectors, placing it below-average in terms of the Proprietary Quantitative Score scoring system.
HON has realized above-average scores in 1 of the 8 fundamental areas appraised by Portfolio Grader and average or below-average scores in 7 of the areas evaluated in the ranking of company stocks.
The company's operational scores are a source of great concern with a ranking for sales growth, operating margin and earnings growth that are substantially below average. Scores for visibility of earnings are a source of great concern with a ranking for earnings revisions, earnings surprises and earnings momentum that are worse than average. HON's metric for return on equity is materially better than its industry group average but its ranking for cash flow is well below-average. Honeywell's fundamental scores give HON a place in the bottom quartile of the industry group.
Quantitatively, Portfolio Grader uses the Proprietary Quantitative Score to view HON's shares from the viewpoint of risk/reward. This exclusive scoring methodology balances the relative value of HON's shares based on the recent $150.41 share price of the shares relative to its peers, the market and risk associated with its industry and sector groups. Based on this risk/reward calculation, the company currently scores as average in its industry group compared to its peers.
The Proprietary Portfolio Grader stock ranking system assesses roughly 5,000 companies every week based on a number of fundamental and quantitative measures. Stocks are given a letter grade based on their results, with A being 'strong buy' and F being 'strong sell'. Explore the tool here.
Commentary provided by UpTick Data Technologies.