Charlotte, North Carolina-based Honeywell International Inc. (HON) engages in the aerospace technologies, building automation, energy and sustainable solutions, and industrial automation businesses. With a market cap of $137.4 billion, Honeywell employs over 100,000 workers across various countries in the Americas, Europe, and the Indo-Pacific.

The industrial giant has significantly underperformed the broader market over the past year. HON stock has gained 10.3% over the past 52 weeks and dipped 3.9% on a YTD basis, lagging behind the S&P 500 Index’s ($SPX) 20.6% surge over the past year and 9.6% returns in 2025.

Narrowing the focus, Honeywell has also underperformed the sector-focused Industrial Select Sector SPDR Fund’s (XLI) 22.9% gains over the past 52 weeks and 15.3% returns in 2025.

Honeywell International’s stock prices plummeted 6.2% in a single trading session following the release of its mixed Q2 results on Jul. 24. The company observed solid growth in organic revenues, which exceeded the high end of management guidance. This was primarily supported by double-digit growth in defense & space and UOP organic sales. Overall, its net sales increased 8.1% year-over-year to $10.4 billion, surpassing Street expectations by 3.3%. Meanwhile, its adjusted EPS grew 10.4% year-over-year to $2.75, exceeding the consensus estimates by 4.2%.

However, these positives were overshadowed by an 8.6% decline in free cash flows to $1 billion. Also, Honeywell’s operating margins contracted by 30 bps to 20.4%, making investors jittery.

For the full fiscal 2025, ending in December, analysts expect HON to deliver an adjusted EPS of $10.57, up 6.9% year-over-year. Further, the company has a robust earnings surprise history. It has surpassed the Street’s bottom-line projections in each of the past four quarters.

The stock maintains a consensus “Moderate Buy” rating overall. Of the 23 analysts covering the stock, opinions include 13 “Strong Buys” and 10 “Holds.”

This configuration has remained stable in recent months.

On Jul. 25, RBC Capital analyst Deane Dray lowered the firm’s price target on Honeywell from $254 to $253 and maintained a “Sector Perform” rating on the stock.

As of writing, HON’s mean price target of $255.05 represents a 17.5% upside potential. Meanwhile, the street-high target of $300 suggests a notable 38.3% premium to current price levels.