There's an interesting dichotomy with a lot of industrial stocks
these days - the stereotypically bullish sell-side is concerned that
demand is going to start fading (and take margin leverage with it),
while the valuations would seem to reflect more of a "what, me worry?"
attitude on the part of owners.
For its part, Honeywell (NYSE:HON) has continued to execute well
and there is still a credible forward-looking story for margins and
M&A. What's more, Honeywell has pretty attractive leverage to the
more attractive industrial markets today and relatively low leverage to
the less attractive sub-sectors. Valuation could be a little better, but
that Honeywell might be cheap at all is somewhat surprising to me and
there still may be some room left to run with this name (not to mention
an attractive long-term angle for more patient investors).
Read more here:
Honeywell Checking Almost All Of The Right Boxes
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