Topic: How To Invest

Q: Pat: What do you think about U.S. stock Honeywell. Thanks.

Article Excerpt

A: Honeywell International Inc., $117.82, symbol HON on New York (Shares outstanding: 762.1 million; Market cap: $90.8 billion; www.honeywell.com), is a diversified technology and manufacturing company. It serves customers worldwide with aerospace products and services plus turbochargers and other automotive products (39% of sales); control, sensing and security technologies for buildings, homes, and industry (37%); and specialty chemicals, electronics, and process technology for petrochemical refining operations (24%). Honeywell’s shares dropped from $115 to as low as $105 in early October 2016 after it lowered the forecast for its fiscal 2016 earnings. After that, the company’s shares rebounded, in part because investors expect President Trump’s policy goals to benefit Honeywell and other multi-industrial companies. Specifically, the new president’s plans include boosting infrastructure spending, lowering corporate tax and increasing defense spending. As well, last week, Honeywell reported better-than-expected results for the three months ended December 31, 2016. While revenue was unchanged from a year earlier, at $10.0 billion, earnings per share rose 13.7%, to $1.74…