HON Should I Buy
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Honeywell International Inc (HON) is not a strong buy for a beginner investor with a long-term horizon at this moment. While the stock shows some positive catalysts such as analyst upgrades and a potential valuation discount due to the aerospace spin-off, the recent financial performance is weak, and the technical indicators do not provide a compelling entry point. Additionally, no Intellectia Proprietary Trading Signals are present to support an immediate buy decision.
The stock is in a bullish trend with moving averages indicating upward momentum (SMA_5 > SMA_20 > SMA_200). The MACD is positive but contracting, and RSI is neutral at 68.078. Key resistance levels are at 243.396 and 248.246, while support levels are at 227.696 and 222.846. However, the stock is trading near its resistance level, suggesting limited immediate upside.
Analysts have raised price targets, with several firms highlighting the aerospace spin-off as a potential value unlock.
The aerospace and defense segment showed strong Q4 growth of 10%, reflecting increased demand.
The stock trades at a discount to its sum-of-the-parts valuation, as noted by multiple analysts.
Weak Q4 financial performance, with revenue down 3.27% YoY, net income down 77.04% YoY, and EPS down 76.53% YoY.
No significant hedge fund or insider trading activity to indicate strong institutional confidence.
The stock has a 50% chance of declining in the short term based on candlestick pattern analysis.
Honeywell's Q4 2025 financials showed a significant decline in key metrics: revenue dropped 3.27% YoY to $9.76 billion, net income fell 77.04% YoY to $295 million, and EPS decreased 76.53% YoY to $0.46. Gross margin also contracted by 2.25% YoY to 35.56%. These results indicate challenges in profitability and growth.
Analysts are generally positive, with multiple firms raising price targets. Notable upgrades include RBC Capital's target of $268 (Outperform), JPMorgan's $260 (Overweight), and Citi's $265 (Buy). However, some analysts remain cautious with Neutral or Hold ratings, reflecting mixed sentiment.
