HONEYWELL INTERNATIONAL INC. $230 is a buy. The company (Nasdaq symbol HON; Manufacturing & Industry sector; Shares outstanding: 635.7 million; Market cap: $146.2 billion; Dividend yield: 2.1%; Takeover Target Rating: Medium; www.honeywell.com) makes a variety of industrial products for aerospace firms (such as jet engines and navigational equipment); factory operators (personal protective equipment and robotic equipment); building owners (fire/smoke detectors and surveillance cameras); and energy producers (specialty chemicals that help industrial firms cut their emissions).

Honeywell has agreed to acquire the Catalyst Technologies operations of U.K.-based Johnson Matthey plc. That business makes chemicals that manufacturers use to make aviation fuel, fertilizers and paints.

On May 22, 2019, apparel maker VF Corp. spun off its Lee and Wrangler jeans business as the publicly traded Kontoor Brands. Investors received one share in Kontoor for every seven VF shares they held.

VF shares are down 80% since the split, due to tariffs on imports from China and Vietnam. However, the stock has rebounded from its recent low as its plan to cut costs and sell less-important brands is set to drive earnings higher over the next few years.

While Kontoor has gained nearly 70%, we feel it can still go higher as it streamlines its supply chains. It will also benefit from its recent acquisition of the Helly Hansen sportswear brand.

IAC INC. $38 is hold. The company (Nasdaq symbol IAC; Consumer sector; Shares outstanding: 76.9 million; Market cap: $2.9 billion; No dividend paid; Takeover Target Rating: Lowest; www.iac.com) has a long history of acquiring smaller Internet-based businesses and spinning them off when they reach a certain size.

However, instead of a spinoff, IAC has now agreed to sell its Care.com business to private equity firm Pacific Avenue Capital Partners. Care.com operates an online portal that helps connect families with professional caregivers for their children, elderly parents and pets. The company paid $626.9 million for this business in February 2020. It will receive $320 million when it completes the sale in mid-2026.

Due to their relatively small size and narrow focus, spinoffs often receive attractive takeover offers. That’s the case with NCR Atleos, which jumped after it agreed to merge with armoured car provider Brink’s Co. Qnity, a recent spinoff from DuPont, will likely attract its own takeover bid. For now, we see both stocks as quality holds.

LAMB WESTON HOLDINGS INC. $41 is still a buy. The company (New York symbol LW; Consumer sector; Shares outstanding: 138.9 million; Market cap: $5.7 billion; Dividend yield: 3.7%; Takeover Target Rating: Highest; www.lambweston.com) is a leading producer of frozen french fries, potatoes and other packaged vegetables.

In June 2025, Lamb Weston struck a new deal with activist investment firm Jana Partners, which owns about 7% of the company. As a result, it added four of Jana’s representatives to its board of directors.

Under the agreement with Jana, Lamb Weston recently announced a new restructuring plan, including focusing on its more-profitable products and on cutting costs. The plan should trim Lamb Weston’s annual costs by $250 million starting in 2028.

Activist investors tend to target firms with quality assets that they feel are worth more than their current market value. Here are two recent examples, but we see better opportunities elsewhere for your new buying.

On August 3, 2021, the old L Brands holding company (then New York symbol LB) split into two, separately listed businesses: Victoria’s Secret and Bath & Body Works. Investors received one new share of Victoria’s Secret for every three shares of L Brands they held. L Brands then changed its name to Bath & Body Works.

Both stocks have struggled since the split, partly due to the added tariffs on products imported from China and other countries. The two firms are now cutting costs and re-focusing on their main brands, which enhances their long-term prospects. Still, we continue to prefer Bath & Body Works for its solid dividend.

WARNER BROS. DISCOVERY INC. $27 remains a hold. The company (Nasdaq symbol WBD; Consumer sector; Shares outstanding: 2.5 billion; Market cap: $67.5 billion; No dividend paid; Takeover Target Rating: Highest; www.wbd.com) announced in June 2025 that it would split into two new firms—Global Networks will hold its cable channels (including CNN, HBO, TNT, TBS, Cartoon Network, Discovery, HGTV, Food Network, TLC and Animal Planet) while Streaming & Studios will own the Warner Bros. entertainment production studios and the various streaming services.

The company later agreed to sell the Streaming & Studios business to Netflix Inc. (Nasdaq symbol NFLX) for $27.75 a share in cash.

Automotive and industrial parts distributor Genuine Parts has suffered lately due to concerns over the impact of tariffs on its customers and credit losses from the recent bankruptcy of a key supplier.

However, the company’s new plan to separate its automotive and industrial products operations into two, publicly traded firms should spur the stock higher in the next few years. That’s because investors prefer pure-play businesses that are easier to evaluate and compare with other investments.

Online auction giant eBay has used acquisitions to expand its marketplace since going public in 1998. Its most-notable buy was the 2002 purchase of electronic payments provider PayPal.

However, after years of slowing growth, in 2015, eBay bowed to pressure from billionaire activist investor Carl Icahn and spun off PayPal as a separate company. Under the terms of the transaction, investors received one PayPal share for each eBay share they held.

Following that split, eBay began to sell other non-core businesses to refocus on its legacy operations. As part of that move, the company deepened eBay’s coverage of niche markets such as collectible sneakers, trading cards, and Swiss watches. At the same time, it developed authentication tools to protect those buyers.