Is It Overvalued? Look at the P/S Ratio: Lloyds Banking Group plc (LYG), Honeywell International Inc. (HON)

You should consider shares of Lloyds Banking Group plc (NYSE:LYG) and Honeywell International Inc. (NYSE:HON) if you are looking for a great stocks to invest in. Starting with the LYG shares, which traded at $3.04 at the close of the recent session, dropping -0.65%. On Tuesday, the company’s shares shed -$0.02 from its value which represented in intraday trading. The stock is now 7.42% higher in year-to-date (YTD) trading. LYG’s intraday high was $3.05 while its lowest price touched $3.02. The stock’s 52-week high price is $3.46, which means the current price is at -12.27%. In terms of trading activity, the daily trading volume fell to 3862983 against 200-day average trading volume of 5,370,395 shares.

What are analyst forecasts for Lloyds Banking Group plc (NYSE:LYG)?

At a consensus rating of 3.20, LYG is trending as a streaking Hold, as it has been the case a month ago when 5 analysts called it a Hold. Two months ago, 6 analysts recommended, on average, that LYG stock is a Moderate Buy. The Financial company’s shares’ overall bearish trend saw it close higher on Tuesday compared to its opening price of $3.03 on the day.

Forecasts for Lloyds Banking Group plc (NYSE:LYG) give the stock a fair value for the growth of 7.88% from its last price. The 12-month price forecast for the stock by analysts puts the stock’s mean price target at $3.30, which means the price per share could rise by nearly $0.26. The price range target is between a low of $2.43 and a high of $4.55. The stock would need to gain by about $33.19 to hit the estimated high or 0.76% from its 12-month low.

The consensus among 22 analysts is that it is a good time for one to Overweight in the Lloyds Banking Group plc. 9 analysts rate LYG as a Buy, with 2 of 22 analysts rate it as a Sell. 3 have valued the stock as Overweight and 6 have recommended that investors Hold.

Lloyds Banking Group plc (NYSE:LYG) Upgrades and Downgrades

In terms of rating changes, Citigroup on October 22, 2019, Downgrade Lloyds Banking Group plc (LYG) at Neutral. Analysts at Goldman have assigned a Sell rating for the stock in their research note on September 12, 2019. Moreover, Deutsche Bank analysts issued a rating of Hold for the stock on September 06, 2019. On September 05, 2019, the stock earned a Underperform rating due to an analyst call from Keefe Bruyette, while analysts from JP Morgan on July 16, 2019 suggested that the stock is Neutral.

Honeywell International Inc. (NYSE:HON) adds -$1.77 on Tuesday

The HON stock has risen 30.60% year-to-date and is currently trading at $172.55, which is -5.77% below its 52-week high. The company shares lost -1.02% on the day and have risen nearly 39.74% off a low hit. At current levels, Honeywell International Inc. has a valuation of about $36.94B. As of 12/03/19, this stock has fallen -2.24% during the week and closed at $174.32 in the previous session. However, recent Honeywell International Inc. stock performance shows that HON shares are -2.03% down over the last month, and 3.24% up for the last three months.

Earnings per share (EPS) estimates for the current quarter are $1.89, with the trailing 12-month share earnings at $7.98. The ratio is expected to be up by 1.60% for the current year 2019 and 8.10% for next year. Over the next 5-year period, earnings per share will be 6.39%. But will the HON stock surprise in the current quarter results, where the $2.08 actual EPS reported on 9/29/2019 surprised by 3.50% or was higher by $0.07 from the estimated $2.01.

Sales Growth to climb 3.70% for the year

How well will Honeywell International Inc. perform as a business over the current quarter, year and next 5-year period? Compared to the year-ago quarter, analysts forecast the company to bring in between $9.36B and $9.71B in current quarter sales. The consensus estimated for the current quarter is $9.6B from sales. Forecasts for this fiscal year are between $36.57B and $36.92B and the consensus estimate for sales is at $36.81B. HON has its next quarter sales estimates at between $8.93B and $9.26B, with the quarter-over-quarter growth estimates at 2.30% and the annual growth forecast for the year at 3.70%.

Who owns shares in Honeywell International Inc. (HON)?

Let’s briefly focus on the share ownership of the Honeywell International Inc. (NYSE:HON) stock, where we find that 77.10% of shares are held by institutions. Vanguard Group, Inc. (The) tops the list of institutional owners as it is holding 53.89 million shares or 7.54% of shares outstanding. Blackrock Inc. and State Street Corporation held 45.24 million and 29.09 million representing 6.33% and 4.07% respectively at the close of the last trading session. As of Sep 29, 2019, Massachusetts Financial Services Co. accounted for 23.13 million shares at over 3.91 billion. This represented 3.24% of shares outstanding. Bank of America Corporation held 21.89 million shares at over 3.7 billion representing 3.06% of shares outstanding.

HON Insider Activity

Insider activity can also give a signal in terms of price direction. Looking at Honeywell International Inc. (HON), a total of 31740 shares have been sold by insiders over the last 6 months while 176074 shares were added in the same time span. On 3/05/2019, President & Chief Executive Officer-Aerospace by the name Mahoney Tim O sold 81132.0 shares worth $12.5 million at the price of $154.30 per share. Filings also show that Mahoney Tim O sold a total of 73352.0 shares on 3/05/2019 valued at $11.3 million. Since the last insider activity, the company’s share price has climbed 13.08%.