As an investor, it can be challenging to discern when a stock price moves for valuation concerns versus material changes in a business's trajectory. That's a consideration when looking at Honeywell International (NASDAQ: HON), whose stock is down 13% year to date and 22% from its all-time high.I'd argue that there's nothing fundamentally wrong with the company, and the decline is more of a valuation correction, rather a vote on the progress of the company through the year. Does that make the stock a buy now?

The company is an industrial conglomerate, and it's doing what one should do. In other words, it has a mix of businesses with various end markets that allow the company to grow across multiple market conditions. That much can be seen in Honeywell's third-quarter sales performance, where strength in aerospace and a solid showing from its performance materials and technologies (PMT) business offset weakness elsewhere.

If you are wondering, the third quarter organic sales growth of 2% doesn't quite reflect the quantum of growth in 2023. For example, management expects full-year organic sales growth of 4% to 5%, with 3% to 7% in the fourth quarter. Meanwhile, full-year adjusted earnings per share (EPS) is forecast to be $9.10 to $9.20, representing growth of 10% to 11% over 2022, excluding pension headwinds in 2023 that won't repeat.

Continue reading

Source Fool.com