Why Honeywell Stock Saw a Muted Performance in December
Honeywell stock price
Honeywell (HON) stock rose 1.7% in December 2016. The company’s stock performance in December was muted compared to November with returns of 3.9%. HON peers General Electric (GE), Textron (TXT), and United Technologies (UTX) had a better December than HON with gains of 2.7%, 5.5%, and 1.8%, respectively. On the other hand, HON was able to outperform the broader market, represented by the SPDR S&P 500 ETF (SPY), which returned 1.4% for the month. On January 6, 2017, HON closed at $118.53.
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Honeywell’s stock performance in December was majorly influenced by the company’s 2017 guidance. HON issued 2017 earnings per share (or EPS) guidance in the range of $6.85–$7.10 driven by organic sales growth. However, HON projected reported sales to be down in the range of 1%–2% due to the effect of divestitures after accounting for acquisitions.
Moving average and relative strength index
Honeywell stock traded in November below its 100-day moving average. However, in December, HON, bounced back and traded 1.8% above its 100-day moving average price of $113.76, indicating a trend reversal in the stock. HON’s 52-week low is $93.71, while its 52-week high is $120.02.
The 14-day relative strength index (or RSI) of 66 indicates that the stock is moving towards the overbought zone. An RSI score of 70 means that a stock has moved temporarily into an overbought situation, whereas an RSI below 30 indicates that a stock has moved temporarily into an oversold position.
In the rest of this series, we’ll take a closer look at HON’s pension obligations, analysts’ latest recommendations, and its most recent valuations.