Honeywell International (HON) is the best Dow Jones stock Monday after the multinational conglomerate announced it was exploring strategic alternatives to unlock shareholder value, including a potential separation of its aerospace business.
"Following the portfolio enhancements announced earlier this year, Honeywell is now well-positioned for significant transformational alternatives, and we are continuing our deeper, more granular exploration of their feasibility and possible timing," said Honeywell CEO Vimal Kapur in a statement.
The announcement comes just over a month after activist investor Elliott Investment Management built a stake worth more than $5 billion in Honeywell, with the goal of pushing for a breakup of the company.
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.
"Elliott welcomes Honeywell's announcement today of its ongoing review of strategic alternatives, including the separation of its aerospace business," Elliott said in a statement. "We believe the portfolio transformation Vimal and his team are leading represents the right course for Honeywell, and we look forward to the upcoming completion of the review and to supporting Honeywell as it implements the necessary steps to realize its full value."
Is Honeywell stock a buy, sell or hold?
Honeywell is up nearly 13% for the year to date and Wall Street is bullish on the blue chip stock. According to S&P Global Market Intelligence, the average analyst target price for HON stock is $242.55, representing implied upside of roughly 3% to current levels. Additionally, the consensus recommendation is Buy.
Financial services firm Argus Research is one of those with a Buy rating on HON along with a $240 price target.
"We believe that Honeywell will continue to benefit from its diverse product lines, as well as from its alignment with three key megatrends – supply chain automation, aerospace & defense, and energy and sustainability," wrote Argus Research analyst Kristina Ruggeri in a November 20 note. "Over the last year, Honeywell has made four key acquisitions to support these trends and has disposed of several non-core businesses. These actions should help simplify the company and increase revenue, margins and productivity in the long-term."
Related Content
-
Hurricane Season 2025: What Travelers Need to Know This SummerA stormy season is brewing. NOAA is forecasting an active hurricane season. Here’s how to protect your trip and avoid costly disruptions.
-
Summer Programs for Kids at Risk Due to Trump Grant Funding CutsTax Dollars Some after-school and summer programs may begin to cut back hours or shut down entirely due to federal cuts to volunteer programs.
-
Eight Estate Planning Steps to Protect Your Loved Ones (and Your Legacy)Two-thirds of Americans don't have an estate plan. If you're one of them, these are the essential steps to take now to prevent problems for your family later.
-
The Six Pros This Adviser Says You Need to Sell Your BusinessSelling your business isn't as simple as getting the best price and walking away. These are the six professionals you'll need to get a deal across the finish line.
-
The Three C's to Financial Success: A Financial Planner's Guide to Build WealthConsistency, commitment and confidence in your chosen strategy are more critical to your financial success than finding the 'perfect' financial plan.
-
A Financial Adviser's Guide to Solving Your Retirement Puzzle: Five Key PiecesIf retirement's a puzzle you're struggling with, try answering these five questions. The answers will guide you toward a solution.
-
You're Close to Retirement and Cashed Out: How Do You Get Back In?If you've been scared into an all-cash position, it's wise to consider reinvesting your money in the markets. Here's how a financial planner recommends you can get back in the saddle.
-
After the Disaster: An Expert's Guide to Deciding Whether to Rebuild or RelocateHomeowners hit by disaster must weigh the emotional desire to rebuild against the financial realities of insurance coverage, unexpected costs and future risk.
-
A Financial Expert's Tips for Lending Money to Family and FriendsWhat starts as a lifeline can turn into a minefield if the borrower ghosts the lender. Following these three steps can help you avoid family feuds over funds.
-
Stock Market Today: Good Feelings and Solid Data Lift StocksResilience and de-escalation defined another generally positive day for financial markets.
