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When Should You Buy Honeywell International Inc. (NASDAQ:HON)?

Simply Wall St · 06/17 17:19

Let's talk about the popular Honeywell International Inc. (NASDAQ:HON). The company's shares led the NASDAQGS gainers with a relatively large price hike in the past couple of weeks. The recent share price gains has brought the company back closer to its yearly peak. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Let’s take a look at Honeywell International’s outlook and value based on the most recent financial data to see if the opportunity still exists.

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Is Honeywell International Still Cheap?

The stock seems fairly valued at the moment according to our valuation model. It’s trading around 9.31% above our intrinsic value, which means if you buy Honeywell International today, you’d be paying a relatively fair price for it. And if you believe that the stock is really worth $205.00, there’s only an insignificant downside when the price falls to its real value. So, is there another chance to buy low in the future? Given that Honeywell International’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility.

Check out our latest analysis for Honeywell International

Can we expect growth from Honeywell International?

earnings-and-revenue-growth
NasdaqGS:HON Earnings and Revenue Growth June 17th 2025

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Honeywell International's earnings over the next few years are expected to increase by 29%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

Portfolio Valuation calculation on simply wall st

What This Means For You

Are you a shareholder? HON’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping an eye on HON, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

If you'd like to know more about Honeywell International as a business, it's important to be aware of any risks it's facing. At Simply Wall St, we found 1 warning sign for Honeywell International and we think they deserve your attention.

If you are no longer interested in Honeywell International, you can use our free platform to see our list of over 50 other stocks with a high growth potential.