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Sunday, July 3, 2022

The Growth and Earning Thesis of Honeywell International Inc. (HON) Stock

Honeywell International Inc. (NYSE: HON) declared its aim to considerably accelerate business expansion in the next years in its recent report, which increased its prognosis for the current year.


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Honeywell International has a variety of characteristics that enable it to profit from the present technological order while also ensuring involvement in future megatrends, such as the arrival of quantum computing.

Honeywell, like many other firms, has struggled with its supply chain this year, which has hampered order fulfillment and profit expansion. In the Russian market, HON stock also lost almost $400 million in sales. Nonetheless, the corporation continues to get new orders, with the order book reaching $28.5 billion (+13 percent in the first quarter). Honeywell anticipates sales of around $36 billion and a profit of $8.5 to $8.8 billion at the end of the year.

Honeywell also raised its organic sales growth projection to 4-7 percent. The company’s business in the rapidly expanding clean technology and renewable energy markets is booming. Honeywell anticipates $700 million in net sales by 2024, up from $200 million in 2021. 

Honeywell’s investment in this firm is pricey and has a negative influence on cash flow. Green technology, on the other hand, has the potential to offer enterprises significant sales growth and long-term earnings in the future. Honeywell’s cash flow, on the other hand, is sufficient for investment in innovation; in 2022, it is estimated to be in the region of $4.7-5.1 billion.

COVID-19 has had a significant impact on Honeywell’s aerospace business, since numerous passenger flights have been canceled, cutting demand for engines and other aircraft components. However, this Honeywell International Inc. (HON) division continues to create enormous revenue, and in the next two years, it is projected to exceed the $14 billion in sales it generated in 2019.

As a result, Honeywell International Inc. (HON) is well-positioned to continue growing its profitability in the years ahead.

Honeywell International Inc.’s (HON) stock lost 1.51 percent on Friday, closing at $189.75. HON’s stock has dropped -1.95 percent in the last five sessions and -3.16 percent in the last month but is still down -9.00 percent year-to-date.

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