Honeywell International (HON)

A third of it is in aerospace. They also do precision materials. 15 times earnings and a very stable, predictable grower. (Analysts’ target: $173.94).

It's been caught up in this movement in quasi-industrial stocks with military-government projects, all due to better global growth. The stock has risen since Trump came in, pronouncing "America First." That said, he's concerned with global growth going forward and HON's margin costs. He wouldn't buy it now.

He loves this company and it is his 4th largest holding. He has a model price of $142.55. The issue is growth going forward. In this space you do want to hold industrials and Honeywell is a well-run company. It is also included in the Top 100 of the S&P500. (Analysts’ price target is $174)

(A Top Pick Feb 8/17, Up 27%) People have been thrown out of the space because of GE-N. He could stick with this quite comfortably. They moved toward recurring revenue. They are a forward thinking industrial and a good one to continue with.

It has been a great company and is well run. It has left GE-N in the dust. The history of spinouts is that after the original dumping of stock investors got, spinouts outperform other parts of the market. You might even buy more of it.

He likes this name. It’s very well diversified with over a 3^rd in aerospace and about a 3^rd in the home and building technologies with money coming from the safety and productivity. Very well diversified industrial name. Shares are trading at about 20X earnings with just under a 10% growth rate.

This has pretty well got right up to very strong technical resistance where, for the past 10 years, they’ve never been able to crack through. Also, it has pretty much reached its FMV or intrinsic value. When you put those 2 together, you have a company that everybody loves, but it isn’t going anywhere.

Has had a heck of a run in the last year and he probably wouldn’t be a buyer today, but on a pullback, he would. A good, long term growth stock.

A premier industrial. Great management and a strong balance sheet. They have about 38%-40% in aerospace. They provide products for the home, as well as to industrial operations. Dividend yield of 1.9%. (Analysts’ price target is $146.)

For a couple of years, the talk has been about the Internet of Things and companies that benefit. Given that the US manufacturing economy is improving, but with very, very old equipment, there is money being spent to upgrade. This company builds instruments that measure things and are connected to the Internet. (See Top Picks.)

(A Top Pick Feb 8/17. Up 16.87%.) He likes that this is based on the connectivity aspect. Whether it is on the aerospace side or the industrial side, they want to use software to connect all the processes in machines and have them speak to each other.

This closed at $134.69, and is bang on its FMV of $134.45. He loves this one.

(A Top Pick June 14/16. Up 20%.) One of the leaders in connected devices in the industrial area. In the world of “Internet of Things”, they make sensors and connected devices. He continues to really like this space. Still a Buy.

He likes the industrials. This is one of the cyclical areas that should do well in an environment where there is reflation and global expansion. Pays a 1.89% yield. Should some of the Washington policies come through, this will continue to move upward. It is trading above the 50 day and the 200 day. A good chart.

(A Top Pick May 25/16. Up 18%.) In April and May and June 2016, a number of sectors turned up relative to the market. He went from sectors that were driven by monetary policy and low interest rate that were doing well, to sectors that were driven by earnings and economic growth. Industrials have been a key theme for him over the last year. Capital spending is picking up in the US. This company is part of the Internet of things.