UBS analyst Amit Mehotra recently added Honeywell International )). In his list of “best options”, which also includes industrialists Johnson’s controls(NYSE: JCI) and 3m(NYSE: MMM). All three have a substantial potential to overcome, and these are the actions that investors should look now.
In a nutshell, Honeywell has the potential To overcome near and long term. The company has already reported the first quarter and the management has increased the middle point of its orientation throughout the year based on an excellent set of results. In addition, the orientation incorporates assumptions for the current level of rates.
It is noteworthy that his aerospace business benefits from the continuous increase in aircraft production, the growth of flight outings and the automation of buildings. Discussing the latter about the earnings call, CFO Mike Stanniak said: “The second consecutive growth quarter of more than two digits in construction solutions and the growth of average digits in construction products.” I will return to this point when Johnson’s controls are discussed.
There are areas of weakness, such as industrial automation, where clients react negatively to uncertainty around rates, but in general, the prospects throughout Honeywell for organic sales growth of 2% to 5% are positive in the current environment.
Image Source: Getty’s pictures.
In the long term, Honeywell’s business has a vice versa from the next break in three divisions. In particular, Honeywell Aerospace will probably benefit from a greater capacity to collect capital and submit a more investment -focused investment proposal. Honeywell automation can benefit from a narrower strategic approach, as management seems to take advantage of the opportunity enabled for the digital web in industrial automation and buildings.
It is a convincing mix and makes Honeywell an excellent stock for nearby and long -term investors.
Honeywell competes with Johnson’s controls in the automation of buildings and strength in the Honeywell buildings automation business reads Johnson’s controls well. The company recently published the results of tax results of the second quarter of 2025, for the period ended on March 31 and recorded 7%organic sales growth. It rapidly increased its winning guide to $ 3.60, from an earlier rank of $ 3.50 to $ 3.60, a significant advantage in the current environment.
In addition, the growth of 5% helped Johnson Controls to increase their Back -Back to $ 14 billion. The following graph demonstrates the continuous growth of equipment and services installed, driven by the increasing deployment of digital technology in their solutions.
Source of data: Presentation of Johnson Controls. Graph by author.
The company is in favor of several long -term growth catalysts, including the added value inherent in the increasing adoption of its Openblue Suite of Solutions connected to the web. This suite uses digital technology (artificial intelligence and digital twins) to optimize construction efficiency. This not only saves money, but also helps builders owners to achieve their net-zero emission goals.
In addition, Johnson’s heating, ventilation and air conditioning systems have a growth opportunity to control temperatures in data centers, making the company. A way to play in the back The AI/Data Center Expenditure Boom.
The relatively new 3m CEO, Bill Brown (designated in May 2024), already promotes improvements in a company that has recently been. The previous management of management of the company’s legal problems loaded it. In addition, a lesser -performing healthcare business (now it is turned away as Pay) It did not see any significant improvement despite the activity of substantial mergers and acquisitions, which was also a distraction from its main industrial and consumer businesses.
With Solventum now and the restructuring actions of the previous management that are beginning to bear fruit, it was time for a new CEO to take the next step and rejuvenate the company to its previous glory.
The first signs are good. Brown promotes the growth of new products (NPIS), while also blocking and facing operational improvements such as improving their score in full deliveries, use of assets and operating efficiency. These improvements have been reached even when the final markets of 3m have been weak in 2025 and the management believes that it is now being followed by the end of their orientation for the growth of organic sales of a full year of 2% to 3%.
Although this is disappointing, readers need to keep in mind that operational improvements helped 3M grow their operational margin to 23.5% in the first quarter compared to 21.3% of the same period last year.
As such, if the fare environment improves, 3M could see a positive triple impact: improved final markets, fewer cost cameras, and probably improved gains as improved margin performance affects the bottom line. It is a convincing mixture that makes actions attractive at risk/reward.
Before buying shares at Honeywell International, consider this:
It Motley Fool Stock Exchange Advisor The analyst team just identified what they think are the 10 best stocks For investors to buy now … and Honeywell International was not one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Think about whenNetflixMade this list on December 17, 2004 … if you invested $ 1,000 at the time of our recommendation,would you have 614,911 dollars!* Or when NvidiaMade this list on April 15, 2005 … if you invested $ 1,000 at the time of our recommendation,would have $ 714,958!*
Now it’s worth notingValue AdvisorThe total average profitability is907%: a market crushing performance compared to163%For the S&P 500. Do not miss the most recent list of 10 Top, available when you joinValue Advisor.
Lee the sams It has no position in any of the stocks mentioned. The Motley Fool has positions and recommends 3M and Johnson International Controls. The Motley Fool recommends solventum. The mold’s fool has a Outreach policy.
