HON Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Loading...
Honeywell International Inc (HON) is not a strong buy for a beginner, long-term investor at this time. While the company has positive developments such as the acquisition of Johnson Matthey's Catalyst Technologies and analysts raising price targets, the recent financial performance shows significant declines in revenue, net income, and EPS. Additionally, technical indicators are mixed, and there are no strong proprietary trading signals or congress trading activity to support an immediate buy decision. A hold strategy is recommended until clearer signs of recovery or growth emerge.
The technical indicators are mixed. The MACD is negatively expanding (-1.002), indicating bearish momentum. RSI is neutral at 50.322, suggesting no clear trend. Moving averages are bullish (SMA_5 > SMA_20 > SMA_200), but the stock is trading below the pivot level of 242.303, with support at 239.614 and resistance at 244.992. Overall, the technical picture does not strongly support a buy decision.
Acquisition of Johnson Matthey's Catalyst Technologies, expected to enhance Honeywell's capabilities in refining and renewable fuels and be accretive to EPS in the first full year.
Analysts have raised price targets, with several maintaining Buy or Overweight ratings.
The aerospace spinoff is expected to unlock value and reduce the valuation discount.
Significant declines in Q4 2025 financial metrics: Revenue (-3.27% YoY), Net Income (-77.04% YoY), and EPS (-76.53% YoY).
Global tariff increase from 10% to 15%, which could impact Honeywell's international operations.
Broader market weakness, with SP500 down -0.56% and bearish sentiment among retail investors.
Honeywell's Q4 2025 financial performance was weak, with revenue down 3.27% YoY to $9.76 billion, net income down 77.04% YoY to $295 million, and EPS down 76.53% YoY to $0.46. Gross margin also declined slightly to 35.56% (-2.25% YoY). These results indicate significant challenges in profitability and growth.
Analysts are generally positive on Honeywell, with multiple firms raising price targets recently. Notable updates include Goldman Sachs increasing the target to $262 and JPMorgan raising it to $260, both maintaining Buy or Overweight ratings. However, some analysts, like Wells Fargo, maintain a Neutral stance, citing valuation concerns and modest growth expectations.
