Why Honeywell Is Outperforming Its Peers



Honeywell’s stock price

So far in 2017, Honeywell International (HON) stock has made solid gains compared to its peers. On a year-to-date (or YTD) basis, HON has risen 13.9%, outperforming Textron (TXT), United Technologies (UTX), and General Electric (GE), which have returned -0.8%, 10.7%, and -11.3%, respectively, as of May 16, 2017.

HON has also outperformed the broad-based SPDR S&P 500 ETF (SPY), which has returned 7.4% YTD.

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Honeywell’s stock price rise in 1Q17 was primarily driven by better-than-expected earnings and revenue that beat analysts’ estimates. Further, HON made an upward revision to the low end of its EPS estimate for 2017. Now, the company expects 2017 EPS of $6.90–$7.10, compared to its earlier guidance of $6.85–$7.10.

Moving average and relative strength index

On May 16, 2017, Honeywell stock closed at $132.01, 6.7% higher than its 100-day moving average of $123.71. This difference indicates an upward trend in the stock. HON’s 52-week low is $105.25, and its 52-week high is $135.

The stock’s 14-day relative strength index (or RSI) of 55 indicates that it’s been neither overbought nor oversold. An RSI of 70 indicates that a stock has moved into an overbought situation, and an RSI of below 30 indicates that a stock has moved into an oversold position.

Continue reading this series for a detailed analysis of Honeywell’s second-quarter dividend, dividend yield, and analysts’ latest recommendations.


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