American industrial conglomerate Honeywell (NYSE:HON)
has a lot of positives going for it - the company is leveraged to
several markets that look relatively healthy going into 2016, management
has credibility when it comes to margin improvement efforts, and the
balance sheet is in pretty good shape. That said, investors are bailing
out of industrials left and right, and Honeywell shares have fallen
about 10% from my midyear update.
What's more, the health of key markets like aerospace, construction,
and auto aren't exactly guaranteed and industrial markets look to be in
for a weak run.
Between the prospects for a
recession in manufacturing in 2016 and management's relatively
conservative guidance for the year, I suppose I can understand why fund
managers aren't eager to hold Honeywell right now. Nevertheless, I think
this may well be a case where individual investors can benefit from not
having that need to respond/report to clients with hair triggers;
buying a dip usually means you're buying into trouble, but unless you
think the world is in for a really bad stretch, I think this is the sort
of opportunity that investors can exploit to get Honeywell shares at a
more attractive price.
Read the full article here:
Not All's Well At Honeywell
