Key statistics

Is HON a good stock to buy in 2026?

Honeywell International Inc. (HON) presents a compelling outlook for 2026 with a P/E ratio of 28.36x trading at a discount to the Conglomerates sector average of 31.3x, and a strong 60.7% buy rating from analysts. However, its DCF fair value of $220.8 suggests a slight overvaluation of -3.8% compared to current prices. This blend indicates that while market sentiment for HON stock is positive, a detailed look at its valuation is essential.

2026 HON price scenarios

Based on analyst consensus of $244.46 from 28 analysts. Not a prediction by Alert Invest.

About Honeywell International Inc. (HON)

Honeywell International Inc. operates as a diversified technology and manufacturing company worldwide. Its Aerospace segment offers auxiliary power units, propulsion engines, integrated avionics, environmental control and electric power systems, engine controls, flight safety, communications, navigation hardware, data and software applications, radar and surveillance systems, aircraft lighting, advanced systems and instruments, satellite and space components, and aircraft wheels and brakes; spar

Led by CEO Vimal Kapur, Honeywell International Inc. employs approximately 102,000 individuals worldwide, leveraging its deep expertise across diversified sectors. The company’s distinctive strengths lie in its vast intellectual property portfolio, a strong focus on innovation in automation, future-shaping technologies, and its global operational scale. This allows Honeywell to maintain a leadership position in critical industrial markets, delivering solutions that enhance safety, efficiency, and sustainability for its diverse customer base.

HON competitive moat and business analysis

Honeywell’s competitive advantage stems from its extensive product portfolio, technological innovation, and established global distribution networks. With a net margin of 12.74%, the company demonstrates solid operational efficiency. While specific Return on Equity (ROE) and Return on Invested Capital (ROIC) data are currently unavailable, the consistent profitability across its various segments underscores its ability to generate value for shareholders. This robust financial performance contributes to a strong market position for HON stock.

Honeywell operates across several core business segments, though specific detailed segment and geographical revenue breakdowns for fiscal year 2025 are not readily available at this time. Historically, the company has diversified its revenue streams across Aerospace, Building Technologies, Performance Materials and Technologies, and Safety and Productivity Solutions, serving a broad global customer base. This multi-segment approach helps to mitigate risks associated with reliance on any single market.

Despite its broad diversification, Honeywell has experienced a revenue growth of -2.7% year-over-year, indicating current market challenges or strategic portfolio adjustments. Without a recent earnings call transcript available, it is challenging to ascertain the specific drivers behind this decline. However, a diversified industrial giant like Honeywell typically focuses on long-term innovation and efficiency to navigate such periods, aiming to restore growth in its core and emerging high-growth areas. Investors will be watching for signs of a turnaround.

When assessing HON stock, it’s insightful to compare its standing against key industry peers. For a deeper dive into how Honeywell measures up on valuation, growth prospects, and analyst sentiment, consider comparing HON vs ADP, a leader in human capital management, HON vs DE, a prominent agricultural and construction machinery manufacturer, and HON vs ETN, a power management company. Such comparisons can highlight Honeywell’s relative strengths and weaknesses within the broader Industrials sector.

Honeywell International Inc. analyst rating

Based on 28 analysts. 60.7% rate HON Buy or Strong Buy.

The 60.7% ‘Buy’ rating for HON stock from analysts indicates a generally optimistic outlook, which is quite strong within the Industrials sector, often characterized by more conservative ratings. This consensus suggests confidence in Honeywell’s operational performance and long-term strategic direction, despite recent revenue trends. Investors considering if HON is a good stock to buy will likely find this positive analyst sentiment reassuring.

Is HON undervalued or overvalued?

Assessing the HON valuation requires examining several metrics. With a P/E ratio of 28.36x, Honeywell trades at a noticeable discount compared to the Conglomerates sector average of 31.3x, indicating that it might be relatively undervalued by the market on an earnings basis. This could suggest that the market expects slower future growth for HON stock compared to its peers, or it represents a potential buying opportunity for investors.

However, the Discounted Cash Flow (DCF) model estimates HON’s fair value at $220.8, which is -3.8% below the current trading price, suggesting a slight overvaluation from an intrinsic value perspective. This discrepancy between a P/E discount to sector and a slightly negative DCF variance underscores the complexity of HON valuation. Investors should weigh these factors carefully, considering both market multiples and intrinsic value estimates, to determine if the current price makes HON a good stock for their portfolio.

HON financial health & key metrics

For value investors, Honeywell International (HON) presents a mixed financial picture. While its P/E ratio of 28.36x is currently trading at a discount compared to the Conglomerates sector average of 31.3x, suggesting it might be reasonably priced, the high debt-to-equity ratio of 2.14x warrants careful consideration. The impressive net margin of 12.74% and a fair FCF yield of 3.7% highlight strong operational efficiency, yet the -2.7% revenue growth indicates some headwinds. The DCF fair value of $220.8 further suggests that the HON stock is currently priced close to its intrinsic value, making a compelling case for a closer look for those seeking long-term stability rather than rapid growth.

Honeywell International Inc. earnings history & next report

Honeywell International Inc. reported EPS of $2.59, beating estimates by 1.97%. Next earnings: 2026-04-23 with EPS estimate of $2.33.

The upcoming earnings report on 2026-04-23 will be a critical event for HON stock, with an estimated EPS of $2.33. Investors will be keenly watching not just whether Honeywell beats this estimate, but also management’s commentary on revenue growth trends, segment performance, and future guidance. Given the recent -2.7% revenue decline, any signs of stabilization or renewed growth strategies will be particularly important in shaping market sentiment for Honeywell International Inc. shares.

HON daily short volume

Short volume data from FINRA CNMS Consolidated — shares sold short in the most recent US trading session. A high short ratio can signal bearish conviction or a potential short squeeze. Updated every trading day.

HON insider trading activity

Corporate insiders must report trades to the SEC within two business days.

Source: SEC Form 4 via EDGAR · Data: Financial Modeling Prep · Not investment advice

Recent HON analyst rating changes

Honeywell International Inc. stock news today

How does HON compare to its peers?

Understanding Honeywell’s position in the market often involves comparing its performance and strategic direction with those of its direct and indirect competitors within the Industrials sector. This comparison helps shed light on Honeywell’s competitive advantages, growth prospects, and overall HON valuation relative to similar large-cap industrial conglomerates. Examining key financial metrics and market positions of peers provides context for evaluating whether HON is a good stock to add to a diversified portfolio.

FAQ — Honeywell International Inc. (HON) stock