The support area of USD 51.55 might facilitate a rally, at least technical. The fundamentals of the company could validate this scenario.
From a fundamental viewpoint, the security is cheap with price earnings ratio of 11.9x for this year and for next year it is estimated to 10.65x. This level of valuation allows it to be cheaper than the industry average. In addition it has also a weak entreprise value to sales ratio at 1.15x for this year.
Currently, the share is in the oversold zone and moving in a bearish trend on the medium-term. In the short-term, this trend could be reversed in contact with USD 51.55. The share should be able to rise in the coming sessions. This support represents an important purchase opportunity within the framework of a technical rebound towards of USD 57.62 and then to the USD 61.78.
Considering technical and fundamental elements, the timing seems appropriate to buy Honeywell International's share in the current trading range to benefit from the support of USD 51.55. We could forecast a first target price of USD 57.62, with a potential gain of 8.1%. We could put a stop loss under medium-term support's level. However, only if the share crosses the resistance's level of USD 57.62 we could validate a bullish trend return and we will forecast a higher target.
Honeywell International Inc. specializes in the manufacturing and marketing of industrial equipment. The group also offers maintenance, technical assistance and engineering services. Net sales break down by family of products as follows:
- aeronautical equipment (37.2%): engines, navigation hardware and software, propulsion and communication systems, satellite and space components, lighting equipment, wheels, etc. The group also offers turbochargers for motor vehicles;
- performance materials and technologies (31.4%): polymers, fibers, resins, acids, additives, catalysts, sorbents, semiconductor packaging materials, coating materials, etc.;
- building automation and control systems (16.4%): heating and ventilation control systems, fire alarms, thermostats, monitoring systems, etc.;
- security and productivity optimization solutions (15%): personal safety equipment, warning systems, gas detection systems, data collection and thermal printing computer solutions, warehouse and supply chain automation systems, data and production process management solutions, etc.
Net sales are distributed geographically as follows: the United States (57%), Europe (22%) and other (21%).
HONEYWELL INTERNATIONAL INC. 
