Honeywell International Inc., #HON [NYSE]
Industrial goods, diversified production, USA

Financial performance of the company:
Index – S&P 500;
Beta – 1.14;
Capitalization – 81.92 В;
Return on asset – 10.20%;
Income - 4.77 B;
Average volume – 4.27 М;
P/E - 17.63;
ATR – 2.59.

Analytical review:

  • The company ranks the third on capitalization in the sector of “Industrial goods” among the issuers traded in the American stock market;
  • On 22 April, the company presented a report for Q1 of the fiscal year 2016, which showed that company’s revenue has grown by 3% up to 9.52 billion USD against market expectations of 9.37 billion USD. The company’s net profit has grown by 9% up to 1.53 USD per share against the forecast of 1.50 USD per share;
  • At the press-conference company’s management stated company’s performance had exceeded market expectations due to cost reduction program and the increase in the volume of sales;
  • Sales in air space segment rose by 3% up to 3.70 billion USD due to production of the new products. Sales in the sector of “Automation” rose by 13% to 3.67 billion USD;
  • The company announced updated forecast for the fiscal year 2016, according to which sales will go up to 40.3-40.9 billion USD against the current expectations of 39.9-40.9 billion USD. The rise in profit will reach the level of 6.55-6.70 USD per share. Previous forecast was at the level of 6.45-6.70 USD per share;

Summary:

  • Last company’s report has increased investors’ confidence to the company. Despite pressure from the strong USD the company’s sales and net profit have exceeded market expectations. Honeywell International has strong growth potential. Updated forecast for the current fiscal year will boost the price of the company’s shares.
  • It is likely that in the near future company’s quotes will go up.

Trading tips for CFD of Honeywell International Inc.

Key levels:
Support levels: 113.35 USD and 110.90 USD.
Resistance levels: 114.90 USD and 116.40 USD.

Medium-term trading, Н1 At the moment the issuer is traded in the demand zone of 113.35-114.90 USD. If the price maintains these levels and in case of the respective confirmation (such as pattern Price Action), we recommend to open long positions. Risk per trade is not more than 2% of the capital. Stop order can be placed slightly below the signal line. Take profit can be placed in parts at the levels of 116.25 USD, 118.50 USD and 121.00 USD with the use of trailing stop.

Medium-term trading, Н1
Medium-term trading, Н1

Short-term trading М15
Currently, the issuer started trading between the local support and resistance levels of 113.35 - 114.70 USD. It is recommended to enter the market after breaking out and testing of these levels. Positions can be opened at the signal line and the nearest support/resistance levels. Risk per trade is not more than 3% of the capital. Stop order can be placed slightly above/below the signal line. Take profit can be placed in parts of 50%, 30% and 20% with the use of trailing stop.

Short-term trading М15
Short-term trading М15




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