Summary
- Honeywell is an industrial conglomerate with strong fundamentals.
- The company has shed non-core assets and has positioned itself in end markets with strong growth potential such as aerospace and industrial productivity.
- Shares are in line with historical norms. Due to the company's fundamentals and actions to develop organic growth, we like the current valuation for long-term investors.
The industrial sector is a very crowded space in the investing world. The explanation for this is simple. Industrial businesses drive our society forward through advancements in the production of the goods and services that our society consumes. There are various companies in the sector that have proven to be lucrative investments over time. Because of how crowded the space is, it can be difficult sometimes for a strong company to stand out. Honeywell International Inc. (HON) is an industrial conglomerate that fits this mold. Because it lacks a storied dividend growth streak, it flies under the radar of dividend growth investors. Because it isn't a Dow Jones constituent, it isn't as well known to retail investors. The company boasts a number of qualities such as strong profit metrics, solid growth, a strong balance sheet - all of which make Honeywell a long-term wealth generator worthy of more attention from investors.
