Stockchase InsightsHoneywell InternationalHONHOLDOct 29, 2025

Great example of a company that looks awesome on paper, but execution has been difficult. Lots of moving parts. Leadership changes, sale of assets, aerospace spinoff. Solid profitability, high ROE of 32.5%. Leverage remains moderate to high, but liquidity ratios indicate it can manage. 

You could buy some here, add ~$200, and the final piece ~$190.

His firm is positive on industrials and aerospace. Reorganization. Recently broke out of base it's held since September 2021; recently pulled back to test. Probably a good entry point.

Aerospace/industrials have been weaker recently. 46% of its business is from aerospace. Lot of value to be unlocked. Likes it for the next 18 months.

Decent value, trading ~26x forward PE with 22-23% expected earnings growth rate. Relative to other industrial names, stock's been somewhat flat over last 12 months. Price is above 200-day MA now, but it's really been up and down over last 6-8 months.

In the space, he prefers names with a bit more growth. Think of GEV, VRT, and CMI. Also see his Top Picks.

Valuations are excessive. On his radar.

There are lots of other opportunities so you could sell and buy one of his three top picks or an ETF.

It will split out into aerospace, etc. so wait to evaluate how this works out. It could go with others that split and then had a few surprises. Make sure your tax advisor has looked at this.

200-day MA relatively flat over last year or so, as has the stock price. Pretty meagre growth rate (7-8%) compared to other names.

In the industrial space, there are names with more attractive growth. Look at CAT, GEV, or VRT.

Directionally positive on HON, as a multi-industrial that's going to get more specialized. Doesn't see the spinoff unlocking the exciting value that the GE breakup did.

As for aerospace, you don't need to own it through the spinoff. Much better owning GE or TDG.

It looks OK technically but has been flat for some time and has quite a low growth rate. He would choose another name in the industrial space like Caterpillar with a growth rate of 20% and levered to the AI space.

Infrastructure behind a lot of the real economy. Story right now is being driven by aerospace -- strong demand for air travel and ongoing maintenance. Spinoffs should make parent more focused and easier to value.

Not high growth, but a steady compounder. Value scores 9/10, fundamentals are 8/10. Room to run, good stock to hold.

Thesis still intact of unlocking value by breaking up. Return number doesn't reflect receiving shares from spinoff of materials segment. He stills owns shares of HON, as well as the spinoff.

GE provided the template to follow -- those spinoffs were very successful and drove a lot of shareholder value. The template's there, but execution matters. Defense and similar sectors have a lot of interest and spending right now. Good company, finally starting to reward shareholders. Good diversifier away from mega-caps.

It reports Thursday. It will break into three business, but investors will say they don't this business or that. This will cause the stock to take a hit.

Broke out of its bigger-term downtrend. Looks pretty positive here. The next short-term target (next couple of months) is going to be around the $240 level (a 10% upside from current levels). 

Take a look at the 3-year chart. You can see the 2 peaks close to $240. If it can push above those, the next upside target is ~$260. Likes the setup, great entry point if an investor bought recently. Trend is upward, at least in the intermediate term.

It is a high quality diversified industrial conglomerate. Will spin out the aerospace division. Some of its businesses are short cycle and therefore more economically sensitive. The automation side looks interesting - wait for it to develop. The M&A strategy might be on hold. There is a stock split.