Honeywell: Post-Spin Growth Story Is Just Getting Started

Summary Honeywell International Inc. is refocused on automation after spinning off its Aerospace and Advanced Materials divisions, emphasizing Buildings, Process, and Industrial segments. HON delivered strong Q2 2026 results and a robust 1.1x book-to-bill ratio, prompting raised full-year guidance. Growth catalysts include accelerating the backlog, the Johnson Matthey acquisition for hydrogen technology, and data center automation opportunities. I maintain a Buy rating on HON stock, citing the company's strong balance sheet, well-covered dividend, ongoing buybacks, and potential for robust total returns. Looking for a portfolio of ideas like this one? Members of iREIT®+HOYA Capital get exclusive access to our subscriber-only portfolios. Learn More » Vertigo3d/E+ via Getty Images Concerns around higher interest rates and inflation have come front and center once again, driving market volatility higher in recent weeks. While higher rates are a risk for growth stocks that have very high multiples, that shouldn’t be This article was written by Gen Alpha 23.6K Followers Follow I am Gen Alpha. I have more than 16 years of investment experience, and an MBA in Finance. I focus on stocks that are more defensive in nature, with a medium- to long-term horizon. I provide high-yield, dividend growth investment ideas in the investing group iREIT®+HOYA Capital. The group helps investors achieve dependable monthly income, portfolio diversification, and inflation hedging. It provides investment research on REITs, ETFs, closed-end funds, preferreds, and dividend champions across asset classes. It offers income-focused portfolios targeting dividend yields up to 10%. Learn more. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in HON over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. I am not an investment advisor. This article is for informational purposes and does not constitute as financial advice. Readers are encouraged and expected to perform due diligence and draw their own conclusions prior to making any investment decisions. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.