Honeywell International Inc. HON recently secured a contract worth $103 million from the U.S. Army to offer its next-generation APN-209 radar altimeter (Next Gen APN-209) system for various army aircraft. The latest deal is built on a long-standing partnership where HON has served as a reliable altimeter provider to the U.S. Department of Defense, with more than 150,000 units supplied.

HON’s shares inched up 0.8% yesterday, eventually closing the session at $217.60.

Inside the Headlines

Honeywell's Next Gen APN-209 is the modified version of its APN-209 system, which has served as the primary radar altimeter on several U.S. military aircraft since 1975. The advanced technology embedded in the updated radar altimeter system boosts the safety, reliability and operational capability of army aircraft, particularly in adverse weather conditions. 

The Next Gen APN-209 features HON’s common-core radar altimeter architecture similar to its civil radar altimeters that minimize risks related to component obsolescence and supply-chain disruptions. It also boasts flexible integration options that come either with an integrated altitude indicator or as a separate transceiver, thereby catering to several aircraft requirements.

HON’s Zacks Rank & Price Performance

Honeywell, with approximately $141.4 billion market capitalization, currently carries a Zacks Rank #4 (Sell). The company is grappling with persistent softness in its Industrial Automation segment. Weakness in the warehouse and workflow solutions businesses due to lower demand for projects has been affecting the segment's performance. 

High debt level also remains a concern. Exiting second-quarter 2024, the company’s long-term debt was $20.9 billion, higher than $16.6 billion at 2023-end. The increase in its debt level was primarily attributable to the funds raised for the Global Access Solutions acquisition. Considering its high debt level, its cash and cash equivalents of $9.6 billion do not look impressive.

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In the past three months, the company’s shares have lost 0.4% against the industry’s 2.7% growth.

The Zacks Consensus Estimate for earnings is pegged at $10.10 per share for 2024, indicating a decrease of 0.5% from the 60-day-ago figure.

Stocks to Consider

Some better-ranked companies from the same space are discussed below.

Markel Group Inc. MKL currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

MKL delivered a trailing four-quarter average earnings surprise of 35.4%. In the past 60 days, the Zacks Consensus Estimate for Markel’s 2024 earnings has increased 3.5%. Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Crane Company CR presently carries a Zacks Rank of 2. The company delivered a trailing four-quarter average earnings surprise of 11.2%.

In the past 60 days, the Zacks Consensus Estimate for CR’s 2024 earnings has increased 0.6%.

Parker-Hannifin Corporation PH currently carries a Zacks Rank of 2. PH delivered a trailing four-quarter average earnings surprise of 11.2%.

In the past 60 days, the consensus estimate for Parker-Hannifin’s fiscal 2025 (ending June 2025) earnings has increased 0.3%.