Honeywell: Good Execution, Secular Growth Exposure, And Strategic M&As To Drive Upside
Summary
- Honeywell's strong backlog, robust order growth, and strategic M&A activity provide solid near-term and long-term revenue visibility.
- Expansion into high-growth markets like data centers and advanced air mobility, plus exposure to secular trends, supports a compelling growth outlook.
- Margin headwinds from tariffs are being addressed through pricing and productivity, with margin expansion expected by FY25 and further gains from portfolio shifts.
- Trading at a discount to peers and historical averages, Honeywell offers an attractive risk-reward profile, justifying my Buy rating.
Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in HON over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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