Is HON a good stock to buy?
We came across a bullish thesis on Honeywell International Inc. on r/ValueInvesting by Buffprime
In this article, we will summarize the bulls’ thesis on HON. Honeywell International Inc.’s share was trading at $231.55 as of May 27th. HON’s trailing and forward P/E were 36.99 and 21.88 respectively according to Yahoo Finance.
Jirat Teparaksa/ Honeywell International Inc. engages in the aerospace technologies, industrial automation, building automation, and energy and sustainable solutions businesses in the United States and internationally. HON is spinning off its Aerospace Technologies division (HONA) in Q3 2026 following activist pressure from Elliott Management, which has built a $5B position, creating a standalone $17.4B revenue aerospace pure-play with 24.6% EBIT margins. 15 AI Stocks That Are Quietly Making Investors Rich Undervalued AI Stock Poised For Massive Gains: 10000% Upside Potential The business spans avionics, APUs, and flight control systems, with an advantaged aftermarket profile where 55–65% of revenues are recurring or semi-recurring and margins run 8–15 points higher than OEM due to airline maintenance cycles, forming a durable moat. The market opportunity is framed less as Greenblatt-style mispricing and more as structural multiple rerating, as division has been valued at 15–17x EBITDA inside Honeywell versus 19–23x for comparable pure-plays such as Collins Aerospace and Safran, implying conglomerate discount removal rather than information asymmetry.