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HONHoneywell International Inc.Sell6.2·$244.87-0.57%
SellModerate Confidence
Investment thesis

A large industrial conglomerate with four consecutive earnings beats and constructive price momentum, but trading just below near-term resistance with only 3.4% headroom to the take-profit target, elevated leverage, and a muted growth profile — the setup favors patience for a better entry rather than adding at current prices.

Thesis pillars

  • Price At Near Term ResistanceStable
  • Consistent Earnings Beat StreakImproving
  • Elevated Leverage Constrains FlexibilityImproving
  • +1 more pillar — see the Why tab for full reasoning

Full reasoning →

Open full analysis

Honeywell International Inc. (HON) Stock Analysis

Breakout setup

SellVALUE-TRAP 1/5GrowthModerate Confidence

Industrials · Conglomerates

Sell if holding. At $244.87, A.R:R is negative (-0.6) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Geographic: non-U.S. international operations; Concentration risk — Supplier: single or sole-source components in Aerospace Technologies.

Honeywell International Inc. engages in the industrial automation, building automation, and energy and sustainability solutions businesses in the United States, Europe, and internationally. The Industrial Automation segment provides automation control and instrumentation... Read more

$244.87-6.5% A.UpsideScore 6.2/10#2 of 19 Conglomerates
QualityF-score6 / 9FCF yield3.39%
IncomeYield3.92%(5y avg 2.06%)Payout36.14%sustainable
Stop $228.39Target $246.96(resistance)A.R:R -0.6:1
Analyst target$252.50+3.1%18 analysts
$246.96our TP
$244.87price
$252.50mean
$186
$298

Sell if holding. At $244.87, A.R:R is negative (-0.6) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Geographic: non-U.S. international operations; Concentration risk — Supplier: single or sole-source components in Aerospace Technologies. Chart setup: Golden cross, above all MAs, RSI 62, MACD bullish. Score 6.2/10, moderate confidence.

Passes 6/8 gates (positive momentum, clean insider activity, news boost analyst 0.70, earnings proximity 88d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: moderate.

news + 30-day 8-K events · 5-min refresh

Recent developments

updated 2026-07-26
TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Thu, Oct 22, 202688d to earnings· next earnings call

Thesis

Rewards
Strong earnings beat streak (4/4)
Positive momentum
Positive insider activity
Risks
Concentration risk — Geographic: non-U.S. international operations
Concentration risk — Supplier: single or sole-source components in Aerospace Technologies
Earnings expected to decline ~62% (cyclical peak)

Key Metrics

P/E (TTM)9.3
P/E (Fwd)24.7
Mkt Cap$77.1B
EV/EBITDA12.1
Profit Mgn21.6%
ROE46.6%
Rev Growth4.3%
Beta0.93
Dividend3.92%
Rating analysts32

Quality Signals

Piotroski F6/9MoatNarrow

Options Flow

P/C0.72neutral
IV71%elevated
Max Pain$280+14.3% vs spot

Concentration Risks(10-K Item 1A)

  • HIGHGeographicnon-U.S. international operations
    10-K Item 1A: 'Our international operations, including U.S. exports, represent more than half of the Company’s sales'
  • HIGHSuppliersingle or sole-source components in Aerospace Technologies
    10-K Item 1A: 'Many major components, product equipment items, and raw materials, particularly in Aerospace Technologies, are procured or subcontracted on a single or sole-source basis'

Material Events(8-K, last 90d)

  • 2026-06-15Item 5.02MEDIUM
    Four directors (Craig Arnold, William Ayer, D. Scott Davis, Deborah Flint) notified the Board they will resign effective immediately prior to consummation of the planned Aerospace Technologies spin-off. Each is expected to join the board of Honeywell Aerospace Inc.
    SEC filing →
  • 2026-06-02Item 5.02LOW
    Jillian Evanko, CEO of Duravant LLC, appointed as Independent Director and Audit Committee member effective June 1, 2026. She will stand for election at the 2027 Annual Meeting. No departures cited.
    SEC filing →

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.

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About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.

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Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.

Methodology · Editorial policy & full disclaimer

Rating Breakdown

1 floor-breaker

Technicals below the gate floor. Component breakdown shows what dragged the score down.static

Bollinger
0.2
Support Resistance
2.6
52w Position
8.8
GatesA.R:R -0.6=NEGATIVEExecutive change: officer departure/appointmentMomentum 7.3>=5.5Insider activity: OKNEWS BOOST ANALYST 0.70EARNINGS PROXIMITY 88d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARBreakoutSuitability: Moderate
RSI
62 · Neutral
20D MA 50D MA 200D MAGOLDEN CROSSSupport $218.10Resistance $252.00

Price Targets

$228
$247
A.Upside-6.5%
A.R:R-0.6:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Cyclical trap - fwd PE 25x vs trail 9x (2.6x)
! Target reached (-6.5% upside)
! Negative risk/reward — downside exceeds upside

Earnings

B
B
B
B
4/4 beats
Next Earnings2026-10-22 (88d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is HON stock a buy right now?

Sell if holding. At $244.87, A.R:R is negative (-0.6) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Geographic: non-U.S. international operations; Concentration risk — Supplier: single or sole-source components in Aerospace Technologies. Chart setup: Golden cross, above all MAs, RSI 62, MACD bullish. Prior stop was $228.39. Score 6.2/10, moderate confidence.

What is the HON stock price target?

Take-profit target: $246.96 (-6.5% upside). Prior stop was $228.39. Stop-loss: $228.39.

What are the risks of investing in HON?

Concentration risk — Geographic: non-U.S. international operations; Concentration risk — Supplier: single or sole-source components in Aerospace Technologies; Earnings expected to decline ~62% (cyclical peak).

Is HON overvalued or undervalued?

Honeywell International Inc. trades at a P/E of 9.3 (forward 24.7). TrendMatrix value score: 5.0/10. Verdict: Sell.

What do analysts say about HON?

32 analysts cover HON with a consensus score of 3.8/5. Average price target: $253.

What does Honeywell International Inc. do?Honeywell International Inc. engages in the industrial automation, building automation, and energy and sustainability...

Honeywell International Inc. engages in the industrial automation, building automation, and energy and sustainability solutions businesses in the United States, Europe, and internationally. The Industrial Automation segment provides automation control and instrumentation products and services; smart energy products; sensing technologies, including custom-engineered sensors and related services; gas detection technologies and personal protective equipment; and system design automation equipment, as well as software and analytics for manufacturing, distribution, and fulfillment operations. The Building Automation segment provides software applications for building control and optimization; sensors, switches, control systems, and instruments for energy management; access control; video surveillance; fire products; and installation, maintenance, and system upgrade services. The Energy and Sustainability Solutions segment, through its UOP business, delivers licensed process technology, equipment, engineering, catalysts, adsorbents, and services for refining, petrochemicals, low-carbon energy, gas and LNG, and industrial solutions, as well as connectivity, data integration, and software solutions. The company was formerly known as AlliedSignal, Inc. Honeywell International Inc. was founded in 1885 and is headquartered in Charlotte, North Carolina.

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