Honeywell Is the Best Dow Jones Stock After Elliott Discloses a Stake
A breakup of Honeywell's businesses could result in major upside for the blue chip stock over the next two years, the activist investor says.


Honeywell International (HON) stock is the best Dow Jones stock Tuesday after activist investor Elliott Investment Management announced it has built a stake in the industrial conglomerate worth more than $5 billion. The activist investor also said it will push for a breakup of HON.
"The conglomerate structure that once suited Honeywell no longer does, and the time has come to embrace simplification," Elliott said in a letter to Honeywell. It believes Honeywell should separate into two standalone companies – Honeywell Aerospace and Honeywell Automation.
"As independent entities, Honeywell Aerospace and Honeywell Automation would benefit from simplified strategies, focused management, improved capital allocation, better operational performance, enhanced oversight, and numerous other benefits now enjoyed by dozens of large businesses that have moved on from the conglomerate structure," Elliott said.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
If Honeywell were to do this separation, Elliott believes it could result in potential upside of 51% to 75% in the industrial stock over the next two years.
"Over the past five years in particular, Honeywell's share price has dramatically underperformed both its peers and the broader market," Elliott said. "The unfortunate result is that Honeywell's cumulative total shareholder return has underperformed benchmarks across virtually all time periods over the past ten years."
Is Honeywell stock a buy, sell or hold?
Honeywell has lagged the broad market in 2024, up roughly 11% on a price basis vs the S&P 500's 25% gain. Still, Wall Street remains bullish on the blue chip stock. According to S&P Global Market Intelligence, the consensus recommendation among the 26 covering analysts it tracks is a Buy.
Speaking for the bulls is CFRA Research analyst Jonathan Sakraida, who maintained a Buy rating on HON following news of Elliott's stake.
"CFRA fully supports an accelerated portfolio transformation as HON is well behind other industrial peers in portfolio optimization that has created significant value for shareholders," Sakraida says. These peers include 3M (MMM) and General Electric (GE), now GE Aerospace following its March split, which have seen strong returns following their spinoffs, he adds.
"A leaner operating model built around secular growth tailwinds (e.g., automation, aviation, and clean energy) should command a higher multiple, in our view," Sakraida concludes.
Related Content
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
10 Best High-Yield Savings Accounts to Grow Your Tax Refund
If you're getting a tax refund this year and want to grow it, here are the best high-yield savings accounts to make it happen.
By Sean Jackson Published
-
TurboTax: Features, Pricing and Filing Options
Is TurboTax worth it in 2025? Explore the pros, cons, pricing tiers and standout features of this popular tax software to see if it fits your filing needs.
By Carla Ayers Published
-
Stock Market Today: Markets Celebrate Trump's Tariff Détente
Consumer discretionary stocks led the 11 S&P 500 sector groups well into the green.
By David Dittman Published
-
Social Security Fairness Act: Five Financial Planning Issues to Revisit
More money as a public-sector retiree is great, but there could be unintended consequences with taxes, Medicare and more if you're not careful.
By Daniel Goodman, CFP®, CLU® Published
-
Social Security Warning: Five Missteps Too Many Women Make
Claiming Social Security is complicated, and for women the stakes are high. What you don't know can cost you, so make sure you do know these five things.
By Daniela Dubach Published
-
To Buck the Third-Generation Curse, Focus on the Family Story
The key is to motivate the next generations to contribute to the family business in a productive way. You can look to Lawrence Welk's family as a prime example.
By John M. Goralka Published
-
Walmart's Transformative Ways Spark a 100,000% Stock Return
Walmart's strategic store expansion and relentless cost-cutting have catapulted its share price over the years.
By Louis Navellier Published
-
20 Ways to Clean Up Your Finances This Spring
Spring cleaning is therapeutic and stops costly problems from building up around the home. Why not tackle the dusty corners of your finances at the same time?
By Lisa Gerstner Published
-
How Roth Accounts Can Ease Your Tax Burden in Retirement
Strategic Roth IRA conversions can set you up for tax-free income in retirement and a tax-free inheritance for the people you love.
By Jim Hanna Published
-
Are You a High Earner But Still Broke? Five Fixes for That
If you're a HENRY (a higher earner, not rich yet) but feel like you still live paycheck to paycheck, there are steps you can take to get control of your financial future.
By Mallon FitzPatrick, CFP®, AEP®, CLU® Published