S&P Index Reshuffle: Honeywell Breakup Significantly Impacts Market
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: seekingalpha
- Honeywell Breakup Impact: Honeywell Aerospace (HONAV) will join the S&P 500 on June 29, replacing Conagra Brands (CAG), indicating that Honeywell International's spin-off will reshape market dynamics and enhance its representation among large-cap companies.
- S&P 100 Changes: Honeywell Aerospace (HONAV) will also enter the S&P 100, replacing Honeywell International (HON), reflecting the increased significance of Honeywell Aerospace post-separation, which may attract more investor attention.
- Small-Cap Index Adjustment: Conagra Brands (CAG) will replace Grid Dynamics (GDYN) in the S&P SmallCap 600, as the latter is no longer representative of the small-cap space, potentially influencing small-cap investment strategies.
- Mid-Cap Index Update: Toast (TOST) will replace TopBuild (BLD) in the S&P MidCap 400 due to the latter's impending acquisition, which may affect mid-cap market performance and investor confidence.
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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: 228.110
Low
195.00
Averages
235.07
High
262.00
Current: 228.110
Low
195.00
Averages
235.07
High
262.00
About HON
Honeywell International Inc. is an integrated operating company serving a range of industries and geographies around the world, with a portfolio that is underpinned by its Honeywell Accelerator operating system and Honeywell Forge platform. The Company provides actionable solutions for aerospace, building automation, industrial automation, process automation, and process technology. The Company supplies products, software, and services for aircrafts that it sells to original equipment manufacturers (OEM) and other customers in a variety of end markets. The Company’s portfolio of solutions and services is used in buildings worldwide for fire prevention, controls, access and security. Its offerings serve as the fundamental building blocks of industrial automation. Its sensor technologies and value-added smart edge devices offer connectivity across a variety of sensing and measurement applications. The Company offers a comprehensive portfolio of end-to-end process automation solutions.
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.
Honeywell Stock Increase Ahead of Spin-Off
- Share Acquisition: We are purchasing 50 shares of Honeywell at approximately $224.67, increasing the Charitable Trust's total holdings to 440 shares, which raises the portfolio weighting from 2.22% to 2.5%, reflecting confidence in the company's growth prospects.
- Spin-Off Outlook: This acquisition occurs ahead of Honeywell's upcoming spin-off of its Aerospace business, which is expected to trade independently, as the market has not fully recognized the higher valuation of its Aerospace division, potentially providing a lucrative opportunity for investors.
- Performance Expectations: The Honeywell Technologies division is projected to achieve 4% to 6% organic sales growth, coupled with steady margin expansion and double-digit annual EPS growth, creating a compelling investment case for a re-rating that could enhance its price-to-earnings multiple.
- Market Opportunities: The potential impact of a Middle East peace deal may increase demand for Honeywell's services in repairing and upgrading oil and gas equipment, especially following damage from the conflict, thereby strengthening its competitive position in the market.
See More
S&P Index Reshuffle: Honeywell Breakup Significantly Impacts Market
- Honeywell Breakup Impact: Honeywell Aerospace (HONAV) will join the S&P 500 on June 29, replacing Conagra Brands (CAG), indicating that Honeywell International's spin-off will reshape market dynamics and enhance its representation among large-cap companies.
- S&P 100 Changes: Honeywell Aerospace (HONAV) will also enter the S&P 100, replacing Honeywell International (HON), reflecting the increased significance of Honeywell Aerospace post-separation, which may attract more investor attention.
- Small-Cap Index Adjustment: Conagra Brands (CAG) will replace Grid Dynamics (GDYN) in the S&P SmallCap 600, as the latter is no longer representative of the small-cap space, potentially influencing small-cap investment strategies.
- Mid-Cap Index Update: Toast (TOST) will replace TopBuild (BLD) in the S&P MidCap 400 due to the latter's impending acquisition, which may affect mid-cap market performance and investor confidence.
See More
Alphabet Replaces Verizon in Dow Jones Industrial Average
- DJIA Changes: Alphabet will replace Verizon in the Dow Jones Industrial Average before the market opens on June 29, enhancing the index's exposure to AI, cloud computing, and digital services, reflecting the diversification of the U.S. economy.
- Stock Reactions: Following the announcement, Alphabet (GOOGL) shares rose 1.1% in after-hours trading, while Verizon (VZ) fell 0.45%, indicating a positive market reaction to Alphabet's inclusion in the index.
- Honeywell Restructuring: Honeywell International will remain in the DJIA under the new name Honeywell Technologies after spinning off its aerospace unit, which will not be included in the index, demonstrating ongoing strategic restructuring efforts.
- Retail Sentiment Analysis: On Stocktwits, retail sentiment for GOOGL remained bullish, with message volume surging over 950% in the past 30 days, reflecting investor optimism about Alphabet's entry into the DJIA and speculation of a potential move towards the $400 level.
See More
Alphabet Joins Dow Jones Industrial Average as Fifth Magnificent Seven Stock
- Dow Jones Change: Alphabet, Google's parent company, will join the Dow Jones Industrial Average as the fifth Magnificent Seven stock, replacing Verizon, indicating a growing recognition of tech stocks in the market.
- Market Impact Analysis: This replacement may attract more investor attention towards Alphabet, potentially driving its stock price up and enhancing its appeal in investment portfolios.
- Tech Stock Status Enhancement: Alphabet's inclusion further solidifies the importance of the tech sector in major indices, reflecting investor confidence in the future growth potential of technology stocks.
- Investor Strategy Adjustment: With Alphabet's addition, investors may reassess their strategies and increase allocations to tech stocks, aiming for higher returns amid future market fluctuations.
See More
Alphabet Replaces Verizon in Dow Jones Index, Expanding Tech Presence
- Index Composition Change: Alphabet will replace Verizon in the Dow Jones Industrial Average, further enhancing the presence of tech giants in the blue-chip index, which is expected to increase market focus on themes like artificial intelligence and cloud infrastructure.
- Stock Price Reaction: Following the announcement, Alphabet's A shares rose about 1%, indicating a positive market response to its inclusion in the Dow, despite recent market volatility, with the stock up over 10% in 2026.
- Financial Position: Alphabet has raised $141 billion for AI investments since October, and while investor fatigue has set in, strong growth in its cloud business continues to deliver solid performance for the company.
- Industry Impact: Alphabet's inclusion will better reflect the dynamics of the tech sector within the Dow, particularly in artificial intelligence and advertising, potentially attracting more investor interest in the long-term growth prospects of these areas.
See More
Stocks Decline as Micron's Earnings Loom Amid Profit-Taking
- Market Trends: Stocks are trading lower on Tuesday, with the S&P 500 and Nasdaq facing back-to-back declines primarily due to a cooling off in AI and data center buildout trades, indicating a trend of profit-taking after significant gains.
- Micron Earnings Outlook: Micron is set to report earnings after the bell on Wednesday, with market participants keenly awaiting signals that demand continues to outstrip supply, which is crucial for maintaining investor confidence in the current market climate.
- DuPont Reverse Split: DuPont's 1-for-3 reverse stock split takes effect on Wednesday, aimed at aligning its per-share metrics with those of U.S. multi-industry peers, although this cosmetic change will not impact the intrinsic value of the investment.
- FedEx Earnings Expectations: FedEx is expected to report revenue of $24.04 billion and EPS of $5.96, with market focus on CEO Raj Subramaniam's comments and the earnings trajectory of the streamlined company following the spin-off of FedEx Freight.
See More
Honeywell Stock Increase Ahead of Spin-Off
- Share Acquisition: We are purchasing 50 shares of Honeywell at approximately $224.67, increasing the Charitable Trust's total holdings to 440 shares, which raises the portfolio weighting from 2.22% to 2.5%, reflecting confidence in the company's growth prospects.
- Spin-Off Outlook: This acquisition occurs ahead of Honeywell's upcoming spin-off of its Aerospace business, which is expected to trade independently, as the market has not fully recognized the higher valuation of its Aerospace division, potentially providing a lucrative opportunity for investors.
- Performance Expectations: The Honeywell Technologies division is projected to achieve 4% to 6% organic sales growth, coupled with steady margin expansion and double-digit annual EPS growth, creating a compelling investment case for a re-rating that could enhance its price-to-earnings multiple.
- Market Opportunities: The potential impact of a Middle East peace deal may increase demand for Honeywell's services in repairing and upgrading oil and gas equipment, especially following damage from the conflict, thereby strengthening its competitive position in the market.
See More
S&P Index Reshuffle: Honeywell Breakup Significantly Impacts Market
- Honeywell Breakup Impact: Honeywell Aerospace (HONAV) will join the S&P 500 on June 29, replacing Conagra Brands (CAG), indicating that Honeywell International's spin-off will reshape market dynamics and enhance its representation among large-cap companies.
- S&P 100 Changes: Honeywell Aerospace (HONAV) will also enter the S&P 100, replacing Honeywell International (HON), reflecting the increased significance of Honeywell Aerospace post-separation, which may attract more investor attention.
- Small-Cap Index Adjustment: Conagra Brands (CAG) will replace Grid Dynamics (GDYN) in the S&P SmallCap 600, as the latter is no longer representative of the small-cap space, potentially influencing small-cap investment strategies.
- Mid-Cap Index Update: Toast (TOST) will replace TopBuild (BLD) in the S&P MidCap 400 due to the latter's impending acquisition, which may affect mid-cap market performance and investor confidence.
See More
Alphabet Replaces Verizon in Dow Jones Industrial Average
- DJIA Changes: Alphabet will replace Verizon in the Dow Jones Industrial Average before the market opens on June 29, enhancing the index's exposure to AI, cloud computing, and digital services, reflecting the diversification of the U.S. economy.
- Stock Reactions: Following the announcement, Alphabet (GOOGL) shares rose 1.1% in after-hours trading, while Verizon (VZ) fell 0.45%, indicating a positive market reaction to Alphabet's inclusion in the index.
- Honeywell Restructuring: Honeywell International will remain in the DJIA under the new name Honeywell Technologies after spinning off its aerospace unit, which will not be included in the index, demonstrating ongoing strategic restructuring efforts.
- Retail Sentiment Analysis: On Stocktwits, retail sentiment for GOOGL remained bullish, with message volume surging over 950% in the past 30 days, reflecting investor optimism about Alphabet's entry into the DJIA and speculation of a potential move towards the $400 level.
See More
Alphabet Joins Dow Jones Industrial Average as Fifth Magnificent Seven Stock
- Dow Jones Change: Alphabet, Google's parent company, will join the Dow Jones Industrial Average as the fifth Magnificent Seven stock, replacing Verizon, indicating a growing recognition of tech stocks in the market.
- Market Impact Analysis: This replacement may attract more investor attention towards Alphabet, potentially driving its stock price up and enhancing its appeal in investment portfolios.
- Tech Stock Status Enhancement: Alphabet's inclusion further solidifies the importance of the tech sector in major indices, reflecting investor confidence in the future growth potential of technology stocks.
- Investor Strategy Adjustment: With Alphabet's addition, investors may reassess their strategies and increase allocations to tech stocks, aiming for higher returns amid future market fluctuations.
See More
Alphabet Replaces Verizon in Dow Jones Index, Expanding Tech Presence
- Index Composition Change: Alphabet will replace Verizon in the Dow Jones Industrial Average, further enhancing the presence of tech giants in the blue-chip index, which is expected to increase market focus on themes like artificial intelligence and cloud infrastructure.
- Stock Price Reaction: Following the announcement, Alphabet's A shares rose about 1%, indicating a positive market response to its inclusion in the Dow, despite recent market volatility, with the stock up over 10% in 2026.
- Financial Position: Alphabet has raised $141 billion for AI investments since October, and while investor fatigue has set in, strong growth in its cloud business continues to deliver solid performance for the company.
- Industry Impact: Alphabet's inclusion will better reflect the dynamics of the tech sector within the Dow, particularly in artificial intelligence and advertising, potentially attracting more investor interest in the long-term growth prospects of these areas.
See More
Stocks Decline as Micron's Earnings Loom Amid Profit-Taking
- Market Trends: Stocks are trading lower on Tuesday, with the S&P 500 and Nasdaq facing back-to-back declines primarily due to a cooling off in AI and data center buildout trades, indicating a trend of profit-taking after significant gains.
- Micron Earnings Outlook: Micron is set to report earnings after the bell on Wednesday, with market participants keenly awaiting signals that demand continues to outstrip supply, which is crucial for maintaining investor confidence in the current market climate.
- DuPont Reverse Split: DuPont's 1-for-3 reverse stock split takes effect on Wednesday, aimed at aligning its per-share metrics with those of U.S. multi-industry peers, although this cosmetic change will not impact the intrinsic value of the investment.
- FedEx Earnings Expectations: FedEx is expected to report revenue of $24.04 billion and EPS of $5.96, with market focus on CEO Raj Subramaniam's comments and the earnings trajectory of the streamlined company following the spin-off of FedEx Freight.
See More
