4-Star Stocks Poised to Pop: Honeywell

by Brian D. Pacampara - November 4, 2009 - 0 comments

Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, industrial conglomerate Honeywell International (NYSE: HON) has earned a respected four-star ranking.

<p>Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, industrial conglomerate <strong>Honeywell International</strong> <span class=

(NYSE: HON) has earned a respected four-star ranking.

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With that in mind, let's take a closer look at Honeywell's business and see what CAPS investors are saying about the stock right now.

Honeywell facts

Headquarters (Founded)	Morris Township, N.J. (1920)
Market Cap	$27.6 billion
Industry	Aerospace and defense
Trailing-12-Month Revenue	$31.55 billion
Management	CEO David Cote (since 2002) CFO David Anderson (since 2003)
Business segments	Aerospace, Automation and Control, Specialty Materials, Transportation Systems
Return on Equity (Average, Past 3 Years)	25.9%
Cash / Debt	$2.6 billion / $8.2 billion
Dividend Yield	3.4%
Competitors	General Electric (NYSE: GE) Tyco International (NYSE: TYC) United Technologies (NYSE: UTX)
CAPS Members Bullish on HON Also Bullish on	Johnson & Johnson (NYSE: JNJ)
CAPS Members Bearish on GE Also Bearish on	Boeing (NYSE: BA) Caterpillar (NYSE: CAT)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 95% of the 1,104 members who have rated Honeywell believe
the stock will outperform the S&P 500 going forward. These bulls
include mflembo and EmmaBem.

Just last month, mflembo reminded Fools that Honeywell is doing just swell:

Honeywell is poised to take off. despite the economy
and the soft airline industry, earnings are good, management has cut
costs and profits are stable. Innovation is the key to this company's
success.

In an earlier pitch, EmmaBem expands on the sweet opportunity:

Honeywell is a solid company and even with the down
economy, is making big sales. Once business spending trends up,
Honeywell will benefit even further. They pay a solid dividend, which
is great for those income investors, but also look for the share price
to give you another 5-10% appreciation year over year. Honeywell is no
fly by night, and should not be traded as such, I'd say buy and hold
for 2-4 years, look for a 25-30% growth, take your dividend payments
and sleep easy at night knowing your money is about as safe as can be
in an equity.

What do you think about Honeywell, or any other stock for that
matter? Make your voice heard on Motley Fool CAPS today. The CAPS
community is waiting to hear your opinions. CAPS is 100% free, so get started!

Last edited by harsheeb on Wed, 11/04/2009 - 09:57 | Write to author: Brian D. Pacampara |