Honeywell Is the Best Dow Stock on Spinoff Speculation
Honeywell stock is higher Monday on news the industrial giant may spin off its aerospace segment. Here's what you need to know.


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
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.
-
Trump's Immigration Policies and the Price of Home Healthcare: First 100 Days
President Trump's immigration policies may wallop your pocketbook if you rely on a home healthcare aide.
-
Stock Market Today: Stocks Extend a Quiet Winning Streak
The S&P 500 Index could actually close April with a monthly gain, which would be an extraordinary sign of market resilience.
-
Stock Market Today: Stocks Extend a Quiet Winning Streak
The S&P 500 Index could actually close April with a monthly gain, which would be an extraordinary sign of market resilience.
-
How Trump's First 100 Days Have Impacted Your Portfolio
President Trump's first 100 days in office have been busy, with a flurry of executive orders sparking volatility in the stock and bond markets.
-
Is It Still Worth It to Gift Savings Bonds?
Kiplinger editor explores if it's still a good idea to get savings bonds as gifts for children, looking at their returns and usability.
-
Don't Veer Off Course at the First Sign of a Squall in the Markets
When markets go nuts and investor sentiment drops, you can keep your sanity by trusting in and sticking with your long-term plan.
-
How Business Owners Can Prepare for a Terminal Diagnosis
The most important thing is readiness, whether the owner faces a life-changing diagnosis or an employee does.
-
Advisers, Take Note: How 2025 Social Security Changes May Impact Your Clients
What financial advisers might need to know to help their clients navigate Social Security in 2025.
-
Stock Market Today: Have We Seen the Bottom for Stocks?
Solid first-quarter earnings suggest fundamentals remain solid, and recent price action is encouraging too.
-
Social Security Is Taxable, But There Are Workarounds
If you're strategic about your retirement account withdrawals, you can potentially minimize the taxes you'll pay on your Social Security benefits.