Honeywell – What do the Fundamentals Predict for Honeywell Worldwide Inc. (HON) Stock?
Honeywell Worldwide Inc. (HON) receives a weak valuation rating of 32 from InvestorsObserver’s knowledge evaluation. The proprietary rating system focuses on the underlying well being of an organization by evaluation of its stock price, earnings, and progress fee. HON has a greater value than 32% of stocks based mostly on these valuation analytics. Traders primarily targeted on buy-and-hold methods will discover the valuation rating related to their targets when making funding selections.
HON has a trailing twelve month price to Earnings (PE) ratio of 30.4. The historic common of roughly 15 reveals a poor value for HON stock as buyers are paying larger share costs relative to the corporate’s earnings. HON’s excessive trailing PE ratio reveals that the agency has been buying and selling above its truthful market value just lately. Its trailing 12-month earnings per share (EPS) of 6.97 doesn’t justify the stock’s present price. Nonetheless, trailing PE ratios don’t issue within the firm’s projected progress fee, leading to many more recent companies having excessive PE ratios as a result of excessive progress potential engaging buyers regardless of insufficient earnings.
HON’s 12-month-forward PE to Development (PEG) ratio of three.89 is taken into account a poor value because the market is overvaluing HON in relation to the corporate’s projected earnings progress due. HON’s PEG comes from its ahead price to earnings ratio being divided by its progress fee. A PEG ratio of 1 represents an ideal correlation between earnings progress and share price. On account of their incorporation of extra fundamentals of an organization’s general well being and specializing in the longer term somewhat than the previous, PEG ratios are some of the used valuation metrics by analysts in the present day.
HON’ has a weak valuation at its present share price on account of a overvalued PEG ratio as a result of sturdy progress. HON’s PE and PEG are worse than the market common resulting in a under common valuation rating.
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