Honeywell Opens Online Store To Improve Access To Solutions

Honeywell International Inc. (NYSE:HON) recently unveiled an online application store — Honeywell Marketplace. Notably, the recent move will allow customers to assess and purchase business-friendly software for various industries like healthcare, manufacturing, retail, as well as transportation and logistics.

Featuring advanced solutions from Honeywell as well as third-party software vendors, the site helps enterprises in improving the productivity and efficiency of their operations. Some of the notable software currently offered at the site include push-to-talk communications and medical tracking for hospital industry and asset tracking, point-of-sale software for retail industry.

Notably, Honeywell Marketplace will allow the software vendors to provide new and innovative solutions to more customers. In addition, the site offers a simple transaction process that has made the ordering and deployment processes easier.

Existing Business Scenario

Honeywell believes that strength in its commercial aftermarket and sensing businesses as well as solid demand for its productivity and commercial fire products will boost revenues in the quarters ahead. Stronger sales volumes, increased productivity and ongoing commercial effectiveness actions will likely improve near-term profitability.

The company is also progressing well with its portfolio transformation strategy, having declared spin-off dividends of shares of Resideo, and completing the divestment of Garrett Motion Inc. In addition, Honeywell completed the acquisition of the German company Transnorm (November 2018). These tactical initiatives will help it concentrate on high-growth industrial businesses and thus boost sales growth.

Over the past year, this Zacks Rank #3 (Hold) company's shares have gained 2.5% against 6.3% decline recorded by the industry.

However, Honeywell is currently dealing with rising costs of sales. Notably, in 2018, the company's cost of sales increased 5.3% year over year. It is currently experiencing inflation in a number of areas like material and labor.

Stocks to Consider

Some better-ranked stocks in the same space are Carlisle Companies Incorporated (NYSE:CSL) , United Technologies Corporation (NYSE:UTX) and Federal Signal Corporation (NYSE:FSS) . While Carlisle sports a Zacks Rank #1 (Strong Buy), United Technologies and Federal Signal carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Carlisle pulled off average positive earnings surprise of 14.46% in the trailing four quarters.

United Technologies delivered average earnings surprise of 14.87% in the trailing four quarters.

Federal Signal delivered average positive earnings surprise of 21.65% in the trailing four quarters.

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