Alfa Laval and Honeywell
On September 18, Honeywell (HON) announced that Alfa Laval Packinox joined its connected plant. Alfa Laval specializes in heat transfer. With the specialization, Alfa Laval could help refiners and petrochemical producers improve their operating efficiency. Heat exchangers are a critical part of Honeywell’s UOP’s CCR platforming technology.
Zak Alzein, Honeywell’s vice president and chief product officer of the connected plant, said, “Honeywell Connected Plant services are unlike any other cloud-based offering because they combine deep process knowledge and analytical capabilities to help refineries and petrochemical plants operate far more reliably and profitably. By working as a Honeywell Connected Plant partner, Alfa Laval can use data from these services to further improve the operating recommendations provided to the customer and even to develop new heat exchanger designs.”
Stock price movement
Honeywell stock continued its upward trend and gained ~1.4%. Honeywell closed at $167.34 for the week ending September 21. The gains caused Honeywell stock to trade 9.6% above the 100-day moving average price of $152.66, which indicates an upward trend for the stock. Honeywell outperformed the Invesco Aerospace & Defense ETF (PPA), which rose ~0.2%%. PPA invests 7.1% of its portfolio in Honeywell.
However, Honeywell investors should be careful. The company’s 14-day RSI (relative strength index) is at 71, which indicates that the stock is very close to being overbought. An RSI of 70 and above shows that a stock has temporarily moved into the “overbought” position, while an RSI of 30 and below indicates that a stock has temporarily moved into the “oversold” position.