Honeywell's New Landscape Post-Spinoff
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 12 hours ago
0mins
Source: Fool
- Formation of Honeywell Technologies: Following the spinoff of its aerospace division, Honeywell has transformed into Honeywell Technologies, focusing on industrial automation with a market cap of $73 billion, and is expected to achieve double-digit earnings growth, showcasing stable profitability and growth potential.
- Strong Performance of Aerospace Division: Honeywell Aerospace has become a hot stock post-spinoff, currently priced at $237.93, and while trading at a 27 times forward earnings ratio, it remains attractive compared to competitors like GE Aerospace at 50 times, though it faces risks from high growth expectations.
- Potential of Solstice: Solstice Advanced Materials has surged 66% since its spinoff, with a market cap of $11 billion; despite not raising guidance recently, its exposure to AI and nuclear energy positions it as a dark horse, with projected earnings growth exceeding 20%.
- Prospects of Quantum Computing: Honeywell's quantum computing venture, Quantinuum, reached a market cap of $19.5 billion post-IPO, with Honeywell holding 48.1% of shares; despite not generating material revenue yet, its future potential attracts investor interest and could provide Honeywell with additional capital growth opportunities.
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Analyst Views on HON
Wall Street analysts forecast HON stock price to rise
15 Analyst Rating
8 Buy
6 Hold
1 Sell
Moderate Buy
Current: 229.860
Low
195.00
Averages
235.07
High
262.00
Current: 229.860
Low
195.00
Averages
235.07
High
262.00
About HON
Honeywell International Inc. is a global, pure-play automation company. The Company serves the building, industrial, and process sectors with a portfolio of services, solutions, and products supported by its Honeywell Technologies Accelerator operating system and Honeywell Technologies Forge intelligence layer. It provides solutions in Building Automation, Process Automation and Technology and Industrial Automation segments across refineries, mines, plants, power grids, data centers, hospitals and others. Its Building Automation segment develops the products, software, solutions and technologies that enable building owners and occupants to ensure their facilities are safe and energy efficient. Its Process Automation and Technology segment provides end-to-end automation and technology solutions. Its industrial automation solutions that deliver sustainable and secure operations for customers in the refining, petrochemicals, life sciences, utilities and warehouse and logistics segments.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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