Pages

  • Home
  • About
  • Earnings Calendar
  • Economic Calendar
  • Subscribe
  • Contact

Honeywell vs. Caterpillar: Where are these 2 Stocks Headed?

These are our articles posted on Seeking Alpha. Click "READ MORE" if you would like to read the rest of the articles.

Honeywell International Is Poised For A Huge Rally

Summary

  • Honeywell posted strong first quarter results, validating our recent predictions.
  • Along with employing new technologies, the company completed several important acquisitions in Q1, which are likely to enhance the company’s revenue base.
  • It is likely to show high single-digit growth in earnings for the full year.
  • With strong first quarter results and an optimistic future, the company’s shares are likely to reach new highs this year.

Honeywell is a resilient company that has weathered low commodity prices and a tough business environment.

Honeywell International Inc. (NYSE:HON) is among those companies that have the potential to generate sustainable growth even in a challenging market environment. The company's business model is broadly diversified and is not dependent on any individual product, service or geographic area. Its business fundamentals are strong, since its end markets are immune to the recent whims of the economic environment.

In our recent article, we suggested investors should hold on to this stock, in light of its innovative technologies and smart business strategies. We predicted that the company's share price had significant upside potential and that its dividends could grow at a high single-digit rate. Honeywell's latest results for the first quarter of this year have only affirmed the accuracy of our opinion... READ MORE



Caterpillar: It's Time To Sell This Stock

Summary

  • Caterpillar’s stock has increased by 25%, but its fundamentals are muted.
  • Its business model is not dependent on oil or other commodity prices, but relies heavily on investments in the exploration and production of these commodities.
  • The company’s stock price could fall again due to bearish fundamentals, so now is a good time sell this stock.

Caterpillar (NYSE:CAT) has faced significant opposition to its business model over the last couple of years. The company's entire business model has been under immense pressure, posting big losses in all segments. Income from all three of its business segments - Construction Industries, Resource Industries, and Energy and Transportation - is falling at a considerable rate. This is now threatening its dividends and the future potential of this company.

The company's share price dipped from $111 a share in summer 2014 to only $56 a share at the beginning of this year. However, after reaching this multi-year low, the company's stock has made a 25% leap since mid-January. As a result, investors are now faced with deciding whether the stock is presenting a tasty selling opportunity or if holding this stock could result in further price appreciation... READ MORE

Get New Article Updates:



More from ADS Insights:

Recent Posts Widget