Is Honeywell a Buy Right Now?
Industrial giant Honeywell International (NASDAQ: HON) delivered second-quarter earnings ahead of previous guidance and raised full-year earnings estimates. The company has excellent earnings momentum behind it, but is it enough to make the stock a buy? Let's take a closer look at the question.
The first place to start is with the industrial stock's valuation because it's hard to make the case that Honeywell is a cheap stock. Across a range of valuation metrics, Honeywell looks more than fully valued. While it's fair to say that the valuations below are constructed using current earnings and free cash flow (FCF) and therefore reflect the weakness in the economy caused by the pandemic, the reality is Honeywell also looks expensive on the Wall Street analyst consensus for 2022.
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Source Fool.com
