Did you miss Honeywell rally from N3.5? Catch this
Nov 21, 2024 7:10 am
In August 2024, I recommended Honeywell stock at N3.5 after spotting a hidden market gap.
Honeywell stock is growing quarterly revenue and narrowing losses incurred in 2023 due to rising costs and FX losses, but the market chose to punish further. This type of market gap or divergence can give you massive returns once sentiments turn positive again.
Well, in 30 days the stock rallied from N3.5 to 5.97 in September 2024 before a pullback, I still think there is room for more rallies going forward.
But here is another opportunity to buy the dip on another consumer goods stock with similar events.
This stock crashed in 2023 due to massive FX loss (arising from the Naira devaluation), besides Q1, the 2023/2024 loss was +N30bn but today it has narrowed significantly to less than N5bn, which had helped to support improved operating results, profit before and after tax.
This stock is at the bottom level, full off with lots of units available for accumulation.
As the strength of exchange rate depreciation normalizes, this might support financials in coming quarters, hence driving a stock rally.