Trade-Ideas LLC identified

Honeywell International

(

HON

) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Honeywell International as such a stock due to the following factors:

  • HON has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $339.2 million.
  • HON has traded 154,918 shares today.
  • HON traded in a range 284.4% of the normal price range with a price range of $4.28.
  • HON traded above its daily resistance level (quality: 534 days, meaning that the stock is crossing a resistance level set by the last 534 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.

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More details on HON:

Honeywell International Inc. operates as a diversified technology and manufacturing company worldwide. The stock currently has a dividend yield of 2.1%. HON has a PE ratio of 18. Currently there are 14 analysts that rate Honeywell International a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Honeywell International has been 4.2 million shares per day over the past 30 days. Honeywell International has a market cap of $85.6 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 0.89 and a short float of 0.8% with 2.16 days to cover. Shares are up 7.5% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Honeywell International as a

buy

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:

  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • HONEYWELL INTERNATIONAL INC has improved earnings per share by 27.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, HONEYWELL INTERNATIONAL INC increased its bottom line by earning $6.05 versus $5.33 in the prior year. This year, the market expects an improvement in earnings ($6.60 versus $6.05).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Aerospace & Defense industry average. The net income increased by 24.9% when compared to the same quarter one year prior, going from $956.00 million to $1,194.00 million.
  • Net operating cash flow has increased to $1,959.00 million or 11.18% when compared to the same quarter last year. In addition, HONEYWELL INTERNATIONAL INC has also modestly surpassed the industry average cash flow growth rate of 4.66%.
  • The debt-to-equity ratio is somewhat low, currently at 0.66, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.74 is somewhat weak and could be cause for future problems.

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