EDGEWELL PERSONAL CARE CO. $22 is a buy for aggressive investors. The company (New York symbol EPC; Consumer sector; Shares outstanding: 46.7 million; Market cap: $1.0 billion; Dividend yield: 2.7%; Takeover Target Rating: Highest; www.edgewell.com) makes a variety of personal care products, including razors (mainly under the Wilkinson Sword and Schick brands), sunscreen lotions (under the Hawaiian Tropic and Banana Boat brands) and hand wipes (Wet Ones).

In February 2026, Edgewell sold its Feminine Care business, including the Playtex, Stayfree, Carefree, and o.b. brands, for $340.0 million. It plans to apply the proceeds to its long-term debt of $1.52 billion (as of December 31, 2025). That’s a high 1.48 times its market cap. It also held $223.3 million in cash and equivalents.

Under pressure from activist investor Elliott Investment Management, industrial conglomerate Honeywell is now breaking up into three separate firms.

It completed the first stage on October 30, 2025 when it spun off its specialty chemical business as Solstice Advanced Materials. Honeywell investors received one share of Solstice common stock for every four shares they held.

The remaining firm will split off its automation and aerospace operations later this year.

Solstice shares are now up 70%, and we expect Honeywell’s new businesses will also reward investors with solid gains over the next few years.

INTERNATIONAL PAPER CO. $48 is a hold for aggressive investors. The company (New York symbol IP, Manufacturing & Industry sector; Shares outstanding: 528.0 million; Market cap: $25.3 billion; Dividend yield: 3.8%; Takeover Target Rating: Medium; www.internationalpaper.com) is a leading provider of cardboard packaging and related products.

It now plans to split into two independent, publicly traded companies. The first, called International Paper, will hold its North American operations. The second, called DS Smith, will own the EMEA (Europe, Middle East and Africa) assets. Investors should note that International Paper will retain a meaningful stake in the spinoff after it hands most of it to its shareholders.

Both of these healthcare companies plan to separate their smaller divisions within the next year or two—a move that has already pushed their shares to record levels. Despite the recent gains, we believe they can keep moving higher.

COSTAR GROUP INC. $49 is a hold. The company (Nasdaq symbol CSGP; Manufacturing & Industry sector; Shares outstanding: 423.8 million; Market cap: $20.8 billion; No dividend paid; Takeover Target Rating: Medium; www.costar.com) is a leading provider of commercial real estate information, analytics, and online marketplaces. Its businesses include LoopNet (commercial properties), Apartments.com (rental listings), Homes.com (residential properties) and Land.com (rural listings).

Activist firms D.E. Shaw and Third Point now want the company to consider strategic alternatives for Homes.com, which it acquired in 2021 and is facing strong competition from more-popular real estate websites like Zillow. CoStar’s management has rejected these demands and will continue to invest in Homes.com. However, this business is losing money, and will not break even before 2030.

Activists typically push for spinoffs or outright sales to spur shareholder value. Here are two recent examples, with one of these targeted firms as a buy for right now.

Shares of Eaton are up more than 20% in the past year, fuelled by strong demand for its power management and regulation equipment. Providers of artificial intelligence software, which are increasing their capital spending to build new datacentres, have driven much of this growth.

Eaton also strengthened its position through the recent acquisition of a company that specializes in liquid-cooling technologies. The deal expands its ability to serve clients.

Eaton now plans to spin off its Vehicle and eMobility businesses, known collectively as the Mobility Group. This division produces electrical power components for automotive and heavy equipment manufacturers.

The split will let Eaton better focus on its faster-growing electrical and aerospace segments.

Moreover, the new Mobility company will gain greater agility to respond to automotive technological changes.

KYNDRYL HOLDINGS INC. $13 is a hold. The company (New York symbol KD; Manufacturing & Industry sector; Shares outstanding: 228.6 million; Market cap: $3.0 billion; No dividends paid; Takeover Target Rating: Medium; www.kyndryl.com) took its current form in November 2021 when International Business Machines Corp. (New York symbol IBM) spun off its legacy business focused on helping corporate and government clients manage their datacentres. Investors received one Kyndryl share for every five IBM shares they held.

The stock recently dropped over 50% after the company disclosed that the Securities and Exchange Commission (SEC) is investigating accounting problems that are preventing Kyndryl from filing its latest quarterly results. The situation also prompted both the Chief Financial Officer and the General Counsel to resign.

FedEx shares has jumped more than 40% over the past year, driven by two key developments.

First, the company plans to spin off its trucking division, FedEx Freight, to create two focused, pure-play businesses. Investors typically favour companies with streamlined operations and minimal overlap because they can evaluate and compare them with other firms more easily. The standalone freight business could also attract a takeover bid, which would unlock additional shareholder value.

Second, FedEx recently completed a multi-year restructuring initiative and launched a new efficiency program. These efforts will cut costs, optimize operations and drive stronger earnings growth in the years ahead.