Honeywell International (HON) Moves 3.2% Higher: Will This Strength Last?

Honeywell International Inc. (HON) shares soared 3.2% in the last trading session to close at $227.41. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 3.3% gain over the past four weeks.

Shares of Honeywell rallied following the news that its board of directors announced the approval for the planned spin-off of its Aerospace business into a separate public company. This marks a key step in the divestiture process, which is expected to be completed on June 29, 2026.
 
Post spin-off of the Aerospace business, HON will operate as Honeywell Technologies as a premier pure-play automation company. The separation and related corporate actions will restructure Honeywell's portfolio, enhance strategic focus and unlock long-term value for its shareholders.

This company is expected to post quarterly earnings of $2.42 per share in its upcoming report, which represents a year-over-year change of -12%. Revenues are expected to be $9.56 billion, down 7.7% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Honeywell International, the consensus EPS estimate for the quarter has been revised marginally lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on HON going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Honeywell International is a member of the Zacks Diversified Operations industry. One other stock in the same industry, Carlisle (CSL), finished the last trading session 2.8% higher at $353.55. CSL has returned 3.9% over the past month.

For Carlisle, the consensus EPS estimate for the upcoming report has changed -0.4% over the past month to $6.45. This represents a change of +2.9% from what the company reported a year ago. Carlisle currently has a Zacks Rank of #3 (Hold).

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This article originally published on Zacks Investment Research (zacks.com).

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