Honeywell International Stock at Support Zone – Bargain or Trap?
Honeywell International (HON) stock should be on your watchlist. Here is why – it is currently trading in the support zone ($190.39 – $210.43), levels from which it has bounced meaningfully before. In the last 10 years, Honeywell International stock received buying interest at this level 5 times and subsequently went on to generate 15.2% in average peak returns.
| Peak Return | Days to Peak Return | |
|---|---|---|
| 11/24/2023 | 8.4% | 35 |
| 2/8/2024 | 6.7% | 49 |
| 4/30/2024 | 14.9% | 78 |
| 8/13/2024 | 21.2% | 125 |
| 4/16/2025 | 25.0% | 78 |
But is the price action enough alone? It certainly helps if the fundamentals check out. For HON Read Buy or Sell HON Stock to see how convincing this buy opportunity might be.
When markets turn, single-asset exposure hurts. Smart financial advisors protect client wealth by working with partners who allocate across multiple asset classes – including the High Quality Portfolio.
Here are some quick data points for Honeywell International that should help decision:
- Revenue Growth: 7.5% LTM and 5.2% last 3 year average.
- Cash Generation: Nearly 15.2% free cash flow margin and 18.9% operating margin LTM.
- Recent Revenue Shocks: The minimum annual revenue growth in last 3 years for HON was 4.0%.
- Valuation: HON stock trades at a PE multiple of 20.8
For quick background, Honeywell International provides diversified technology and manufacturing solutions, including building control software and personal protective equipment, apparel, and footwear for safety and productivity.
| HON | S&P Median | |
|---|---|---|
| Sector | Industrials | – |
| Industry | Industrial Conglomerates | – |
| PE Ratio | 20.8 | 23.6 |
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| LTM* Revenue Growth | 7.5% | 6.1% |
| 3Y Average Annual Revenue Growth | 5.2% | 5.4% |
| Min Annual Revenue Growth Last 3Y | 4.0% | 0.2% |
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| LTM* Operating Margin | 18.9% | 18.8% |
| 3Y Average Operating Margin | 19.5% | 18.2% |
| LTM* Free Cash Flow Margin | 15.2% | 13.5% |
*LTM: Last Twelve Months
What Is Stock-Specific Risk If The Market Crashes?
Honeywell isn’t immune to big drops. It plunged about 64% in the Dot-Com bust and 62% during the Global Financial Crisis. The Covid sell-off knocked it down around 43%, while the 2018 correction and inflation shock still took it 22% and 27% lower, respectively. Solid fundamentals matter, but even reliable stocks can see steep declines when markets turn.
But the risk is not limited to major market crashes. Stocks fall even when markets are in good shape – think events like earnings, business updates, outlook changes. Read HON Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.
The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.