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
-
Student Visas: Older Americans' Ticket to Living in EuropeDo you envision strolling about Europe, a book in one hand, a glass of wine in the other? You could make that happen by studying there, even if you're older.
-
Three Reasons It May Be Time for an Annuity 'Refresh'Because of higher interest rates, inflation and newer annuity products, you could get a better deal today. Don't wait, though: Interest rates could start falling.
-
McDonald's Stock: How Small Changes Have Led to 100,000% ReturnsMcDonald's incremental operating improvements have added up over the years, sending the company's long-term profitability soaring.
-
Three Common Cash Flow Mistakes and How to Fix ThemBetter cash flow management could have a bigger impact on your retirement savings than simply making more money. Here's how to manage that.
-
Trusts for Child Influencers: What Families Need to KnowAs video blogging, or vlogging, gains popularity (and profitability), new laws are shaping financial obligations for caregivers of young creators.
-
Three Easy Financial Tips to Help Make This Year a SuccessEarly in a new year is the perfect time to assess where you are financially. Start by ensuring you're protected from fraud and evaluating your investments.
-
Stock Market Today: It's Mostly Onward and Upward for EquitiesThe major U.S. equity indexes were mixed Friday but closed an eventful week for earnings and data modestly higher.
-
Airbnb Stock Soars After Revenue, Earnings Top ExpectationsAirbnb stock soared Friday after the homestay and experiences platform beat fourth-quarter revenue and earnings expectations. Here's what you need to know.
