In prior articles on Honeywell (HON),
I had written that I expected this company’s attractive business mix
and high-quality management to deliver above-peer results in 2018. So
far, that prediction is looking relatively safe as Honeywell continues
to produce strong overall results. Better still, the company’s leverage
to aerospace and safety should continue to generate good short-term
results, while businesses like process automation and productivity look
to have strong long-term potential.
Honeywell has
lagged the S&P 500 on a year-to-date and trailing 12-month basis,
and I can’t really say that the shares are cheap today. The current
industrial cycle may not be as late as previously thought, but
industrial sector valuations are still pretty high on a historical basis
and I am worried that rotation away from the sector could offset the
good results from Honeywell. I’m not urging long-term holders to sell,
but the price still isn’t at a price that compels me to buy.
Read more here:
Honeywell's Story Getting A Little Sweeter
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