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Honeywell International Inc. HON recently announced its partnership with SAMSUNG E&A to mutually market a solution designed for minimizing carbon emissions in the power plant sector throughout the world. The collaboration is in line with Honeywell’s commitment to expanding its portfolio to keep up with the energy transition megatrend.

HON’s share price inched down 0.2% yesterday, eventually closing the session at $204.24.

More on HON’s Partnership

The collaboration will involve SAMSUNG E&A leveraging Honeywell's advanced solvent carbon capture technology to enable power plants to meet environmental regulatory compliances. The deployment of HON’s carbon capture technologies will enable SAMSUNG E&A to offer a viable and sustainable solution for reducing greenhouse gas emissions.

Honeywell’s carbon capture, utilization and storage (CCUS) technologies help users to minimize carbon dioxide emissions during the transition from fossil fuels to lower-carbon energy sources. Between 2023 and 2030, HON expects its CCUS technologies to mitigate 320 million metric tons of carbon dioxide on a global basis.

HON’s Zacks Rank & Price Performance

Honeywell, with approximately $131.5 billion market capitalization, currently carries a Zacks Rank #3 (Hold). The company is set to gain from strength in its commercial aviation aftermarket and original equipment. However, softness in its Industrial Automation segment remains a concern.

In the past six months, the company’s shares have gained 2.6% against the industry’s 4.5% decline.

The Zacks Consensus Estimate for earnings is pegged at $10.14 per share for 2024, indicating a decrease of a penny from the 30-day-ago figure.

Stocks to Consider

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

Federal Signal Corporation FSS currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Federal Signal delivered a trailing four-quarter average earnings surprise of 12.3%. In the past 60 days, the Zacks Consensus Estimate for FSS’ 2024 earnings has increased 5.2%.

Vector Group Ltd. VGR presently carries a Zacks Rank of 2. The company delivered a trailing four-quarter average earnings surprise of 15.4%.

In the past 60 days, the Zacks Consensus Estimate for VGR’s 2024 earnings has increased 5.2%.

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 earnings has increased 1.3%.

Zacks Investment Research

The Conglomerates group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Sumitomo Corp. (SSUMY) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Conglomerates peers, we might be able to answer that question.

Sumitomo Corp. is one of 24 individual stocks in the Conglomerates sector. Collectively, these companies sit at #1 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Sumitomo Corp. is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for SSUMY's full-year earnings has moved 4.7% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the latest available data, SSUMY has gained about 2.6% so far this year. Meanwhile, the Conglomerates sector has returned an average of -6.6% on a year-to-date basis. This shows that Sumitomo Corp. is outperforming its peers so far this year.

One other Conglomerates stock that has outperformed the sector so far this year is Vector Group (VGR). The stock is up 32.2% year-to-date.

Over the past three months, Vector Group's consensus EPS estimate for the current year has increased 5.2%. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Sumitomo Corp. is a member of the Diversified Operations industry, which includes 24 individual companies and currently sits at #42 in the Zacks Industry Rank. Stocks in this group have lost about 6.6% so far this year, so SSUMY is performing better this group in terms of year-to-date returns. Vector Group is also part of the same industry.

Investors interested in the Conglomerates sector may want to keep a close eye on Sumitomo Corp. and Vector Group as they attempt to continue their solid performance.

Zacks Investment Research

ITT Inc. ITT recently completed the acquisition of kSARIA Parent, Inc. (kSARIA). The transaction, valued at approximately $460 million, will be paid using a new term loan and the company’s current cash. This deal was announced in August 2024.

Based in Hudson, NH, kSARIA is engaged in designing and manufacturing high-quality cable management and protection solutions. The company also provides comprehensive turnkey installation services for fiber optic and electrical cable systems, specifically tailored for military and aerospace applications.

Acquisition Rationale of ITT

This acquisition is in sync with ITT’s policy of acquiring businesses to strengthen its business and expand its product portfolio and market share. The inclusion of kSARIA’s highly engineered cable assemblies for avionics, sensors, communications and networking applications will bolster its existing connector portfolio. By incorporating K-SARIA’s well-established client base, ITT will be able to penetrate and diversify its offerings in key markets.

kSARIA will be incorporated into the Connect & Control Technologies (CCT) segment.

Other Notable Acquisitions of ITT

The company acquired privately held Svanehøj Group A/S (Svanehøj) in January 2024 for approximately $395 million. The acquisition expanded its offerings, particularly in the marine pumps market. The acquisition of Micro-Mode Products, Inc. in May 2023 expanded ITT's product portfolio and customer base, specifically for long-term defense programs. It also grew its North America connectors platform, thus enhancing the CCT segment.

ITT acquired Clippard Instrument Laboratories’ product lines in August 2022. The latter’s stainless steel, brass and aluminum cylinders and volume tanks expanded its compact automation product range targeting the robotics, packaging and automation end markets. The acquisitions of Svanehøj and Micro-Mode contributed 4% to the company’s sales growth in second-quarter 2024.

ITT’s Zacks Rank and Price Performance

ITT currently carries a Zacks Rank #3 (Hold). In the past year, the company’s shares gained 37% compared with the industry’s 0.4% growth.

ITT is benefiting from strength across its segments and strong operational execution. Growth in pump projects in the energy market is aiding the Industrial Process segment. Increasing component and connector sales within the aerospace and defense markets are supporting the CCT segment. The company’s investments in innovation are likely to support continued growth.

Continued increases in raw material and labor costs are likely to hurt its profitability if demand weakens in any quarter. Increasing general and administrative expenses are worrisome as well. Also, given its international presence, foreign currency headwinds and exposure to troubled geographies are concerns.

Stocks to Consider

Some better-ranked companies are discussed below.

Federal Signal Corporation FSS currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Federal Signal delivered a trailing four-quarter average earnings surprise of 12.3%. In the past 60 days, the Zacks Consensus Estimate for FSS’ 2024 earnings has increased 5.2%.

Vector Group Ltd. VGR presently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter average earnings surprise of 15.4%.

In the past 60 days, the Zacks Consensus Estimate for VGR’s 2024 earnings has increased 5.2%.

Parker-Hannifin Corporation PH currently carries a Zacks Rank of 2. PH delivered a trailing four-quarter average earnings surprise of 2.6%.

In the past 60 days, the consensus estimate for Parker-Hannifin’s fiscal 2025 earnings has increased 1.2%.

Zacks Investment Research