Advertisement
New Zealand markets closed
  • NZX 50

    11,817.91
    +89.90 (+0.77%)
     
  • NZD/USD

    0.6040
    -0.0046 (-0.75%)
     
  • ALL ORDS

    7,957.80
    +32.60 (+0.41%)
     
  • OIL

    82.60
    -0.12 (-0.15%)
     
  • GOLD

    2,155.90
    -8.40 (-0.39%)
     

Honeywell (HON) Boosts Organic Growth Path on New Contracts

Honeywell International Inc. HON inked a fresh three-year contract with Asia Pacific’s biggest business aviation operator — Deer Jet —  in a bid to extend the latter’s aircraft protection plan.

Per the deal, Deer Jet will enroll nine aircrafts into Honeywell Mechanical Protection Plan (MPP) and additional 12 aircrafts in Honeywell Avionics Protection Plan (HAPP).

Honeywell’s premium protection and maintenance service program, HAAP, offers cost effective and speedy avionics assistance to general, as well as business aviation operators. The program helps evade unforeseen maintenance costs and keeps fleets flight-ready and optimized. HAPP protects aircrafts of more than 3,000 operators globally, at present.

Under the MPP and HAPP plans, Honeywell has been providing aircraft protection services to Deer Jet, since 2015. These reliable and cost-effective programs have helped Deer Jet save approximately $1 million of fleet maintenance expenses, so far.

On a month-to-date basis, shares of this Zacks Rank #3 (Hold) company rallied 2.9%, outperforming 0.2% growth recorded by the industry.

Amid headwinds like material price inflation, the company is poised to grow on the back its diversified product portfolio and increased free cash-flow generation.

In addition to the aforementioned deal, Honeywell recently announced that its UOP Russell business will provide a high-recovery cryogenic gas producing plant to Houston-based midstream company — Caprock Midstream, LLC. The plant will be included in the latter’s West Texas Pecos Bend facility.

The new plant will be capable of extracting 100% of heavier hydrocarbons and propane, and 99% of ethane from the Permian basin.

Furthermore, Caprock Midstream will use Honeywell’s Process Insight Reliability Advisor at its facility.

Stocks to Consider

Some better-ranked stocks in the same space are listed below:

Bunzl PLC BZLFY carries a Zacks Rank #2 (Buy). The company’s earnings per share (EPS) are projected to grow 2% in the next three to five years. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Danaher Corporation DHR also holds a Zacks Rank #2. The company’s EPS is estimated to rise 12%, over the next three to five years.

Raven Industries, Inc. RAVN has a Zacks Rank of 2. The company’s EPS is predicted to be up 10% during the same time frame.

Can Hackers Put Money INTO Your Portfolio?

Earlier this year, credit bureau Equifax announced a massive data breach affecting 2 out of every 3 Americans. The cybersecurity industry is expanding quickly in response to this and similar events. But some stocks are better investments than others.

Zacks has just released Cybersecurity! An Investor’s Guide to help Zacks.com readers make the most of the $170 billion per year investment opportunity created by hackers and other threats. It reveals 4 stocks worth looking into right away.

Download the new report now>>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Danaher Corporation (DHR) : Free Stock Analysis Report
 
Honeywell International Inc. (HON) : Free Stock Analysis Report
 
Raven Industries, Inc. (RAVN) : Free Stock Analysis Report
 
Bunzl PLC (BZLFY) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research