Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages.
Just because a business is in the green today doesn’t mean it will thrive tomorrow.
Bank of America analyst maintains Buy rating on Honeywell and raises price target from $250 to $275. Expecting strong Q2 and Q3, potential for re-rating.
Honeywell (NASDAQ: HON) is considering strategic options for its logistics-focused business units, as part of its restructuring to focus on automation. CEO Vimal Kapur says this aligns with their goal of concentrating on industrial, process, and building automation. The review process will not affect the planned spin-offs of other divisions. Jim Masso has been appointed to lead the process automation division. HON shares declined 0.24% premarket. Lockheed Martin leads in capital efficiency in the defense sector, but market response is lackluster.
Honeywell announced that it is reviewing options for two of its businesses ahead of the company's split to simplify its portfolio and focus on its core operations, specifically aerospace and automation.
Large-cap stocks are known for their staying power and ability to weather market storms better than smaller competitors.
However, their sheer size makes it more challenging to maintain high growth rates as they’ve already captured significant portions of their markets.
Resideo’s first quarter results were well received by the market, reflecting both strong execution and resilience in the face of ongoing macroeconomic uncertainty. Management pointed to robust organic growth in its Products and Solutions segment, healthy customer demand, and continued margin expansion as primary drivers. CEO Jay Geldmacher highlighted the positive impact of new product launches, such as the Honeywell Home FocusPRO thermostats and First Alert VISTA security products, as well as successful tariff mitigation strategies. Additionally, President Tom Surran noted that the Products and Solutions business achieved its eighth consecutive quarter of year-over-year gross margin expansion, powered by efficient factory utilization and a steady cadence of new product introductions.
Honeywell (HON) is nearing a Golden Cross, a bullish technical indicator, amid a strategic shift to focus on core strengths and increase shareholder value.
Honeywell’s first quarter saw a positive market reaction as the company delivered revenue and non-GAAP profit above Wall Street expectations. Management attributed the performance to strong demand in aerospace, particularly in commercial aftermarket and defense, alongside steady execution in building automation. CEO Vimal Kapur highlighted the company’s resilience, noting, “Our results demonstrate tremendous effort from our commercial teams, successful productivity initiatives, and excellent supply chain coordination with our partners in a rapidly changing marketplace.” The quarter also saw robust order growth and progress on integrating recent acquisitions, offsetting weaker trends in industrial automation and energy and sustainability solutions.
As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q1. Today, we are looking at general industrial machinery stocks, starting with Luxfer (NYSE:LXFR).
