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.
Receive e-mail alerts for new research on GE:
Interested in GE?
Don’t miss the next report.
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.
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.