There is plenty to worry about these days, not only in a general economic/market sense but also more specifically to Honeywell (NYSE:HON). Can Darius Adamczyk fill the very large shoes that CEO David Cote will leave behind? How much turnover will occur at the senior leadership levels, and just how deep is Honeywell's management bench? Oh, and while we're at it, what's going to spur meaningful improvements in global productivity and capex investment such that growth can break out of the low-single-digits?
If we're in a lower-for-longer scenario, I think Honeywell is a good companion for the journey. The shares are up about 13% from my last article and no longer trade at a discount to my fair value, but I still think the price works out to high single-digit total returns. What's more, if and when that lower-for-longer scenario does become the consensus, I think stocks like Honeywell, 3M (NYSE:MMM), Illinois Tool Works (NYSE:ITW), Danaher (NYSE:DHR), Rockwell (NYSE:ROK) and a few others will become darlings for their ability to drive relatively better performance.
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Amid A Lot Of Uncertainty, Honeywell Is Still Honeywell