Honeywell is a US-based conglomerate dealing in many different industries. Despite the macroeconomic outlook, the prospect for Honeywell looks positive.

Overview

Honeywell is an American company, listed on the NASDAQ, that primarily operates in four areas of business: aerospace, building technologies, performance materials and technologies, and safety and productivity solutions. Honeywell is a well-managed and broadly diversified company with good growth prospects, despite the macro climate. The stock price is currently priced at $170.87, which is down around 27% from its all-time high in August 2021.

Financials

The total market cap for Honeywell is about $118bn. Total revenue for the year (Mar 21" - Mar 22") was $34bn, which is a 5.17% increase over the previous year, representing solid growth. Furthermore, Honeywell’s net income for the same year was $1bn, which is a decline 20% from the previous year. Regarding the balance sheet, total assets sit at $63bn while total liabilities sit at $44bn, representing a net positive of $19bn and a L/A ratio of 70%, which is acceptable. Overall, the financials for Honeywell are neutral, they have seen good growth in revenue and have a moderately strong balance sheet.

Technicals

The stock currently has support below at around $158, a breakthrough in this support could see us test support at $142. These are vital support levels, if we do not see a bounce back, then we could expect prolonged low prices. MACD reads slightly negative suggesting the downturn in stock price may not be over; While RSI reads at 31 which represents that the stock is oversold, and hence is a bullish signal for the stock price. Towards the upside, the initial target sits at $197, followed by $212, and then finally we could see it breaking its all-time high of $234. The Technicals for Honeywell are bullish, with RSI representing a near oversold signal (32.9), however, the MACD suggests that we may see more of a decline before that bounce back arises.

Summary

Overall, Honeywell is well-positioned for sustainable growth despite the current macro climate. The financials indicate the solid growth that they have seen in previous years while also indicating the solid foundation they must weather economic challenges should they arise. To summarise, Honeywell could see a further decline before it starts aiming for the targets mentioned, irrespective of this, Honeywell has solid long-term growth prospects.