Honeywell Has Been Impressive in 2017



Honeywell’s stock performance

So far in 2017, Honeywell (HON) has made investors happy with staggering returns, a dividend increase, and share buybacks. Honeywell had a strong performance among its peers. As of November 27, 2017, the stock has gained ~29.90% in 2017. Its peers Textron (TXT) and United Textron (UTX) have risen 10.10% and 6.8%, while General Electric (GE) has fallen 42.70%. Honeywell has also outperformed the broad-based SPDR S&P 500 ETF (SPY), which has risen 16.40% during the same period.

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Honeywell’s stock price growth was mainly pioneered by strong earnings in all three quarters. Its earnings managed to beat analysts’ estimates. Previously, Honeywell increased its earnings guidance. After 3Q17, Honeywell reaffirmed its previous EPS guidance. Honeywell’s plans to spin off its ADI Global Distribution business and Transportation business along with a dividend increase helped to push the prices up. The strong growth in its UOP business, the introduction of new business, and acquisitions are expected to drive the future growth.

Moving averages and RSI

As of November 27, 2017, Honeywell closed at $150.43. The strong growth in Honeywell’s stock price caused the stock to trade 6.9% above its 100-day moving average price of $140.66, which indicates the prevailing upward trend in the stock. Honeywell’s 14-day RSI (relative strength index) of 72 indicates that the stock has temporarily moved into an overbought situation and could see some selling pressure shortly.

In this series, we’ll discuss Honeywell’s dividend, dividend yield trends, and more.


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