DRIVEN BRANDS HOLDINGS INC. $13 is a hold. The company (Nasdaq symbol DRVN; Consumer sector; Shares outstanding: 164.4 million; Market cap: $2.1 billion; No dividend paid; Takeover Target Rating: Lowest; www.drivenbrands.com) operates 4,900 automotive repair and servicing locations in 49 U.S. states and 13 other countries.

The company first sold shares to the public on January 15, 2021, at $22.00 a share. Roark Capital Management owns 61% of the stock.

We track activist investors, as they tend to target firms that can boost their value by selling or spinning off undervalued assets. However, we have little confidence in these two tech stocks that are now in the crosshairs of activists.

L3HARRIS TECHNOLOGIES INC. $356 is a hold. The company (New York symbol LHX; Manufacturing sector; Shares outstanding: 186.8 million; Market cap: $66.5 billion; Dividend yield: 1.4%; Takeover Target Rating: Medium; www.l3harris.com) provides end-to-end technology solutions for the space, air, land, sea and cyber industries. The U.S. government and its various security-related agencies accounted for 22% of its overall revenue in 2025.

L3Harris now plans to spin off its Missile Solutions Business through an initial public offering. This business makes rockets and missiles for the U.S. military and its allies. As part of the plan, the U.S. Department of Defense will invest $1 billion into this new firm through a preferred security that it can convert into an undisclosed equity stake. The company expects to complete the IPO later this year.

These two spinoffs have delivered steady gains as independent companies. We like the outlook for both, but feel Valvoline has better short-term prospects.

On April 1, 2026, auto parts maker Aptiv spun off its electrical distribution systems business as a separate firm called Versigent. It makes equipment and components for electric and internal-combustion vehicles.

Investors received one Versigent share for every three Aptiv shares they held. Shareholders will not be liable for capital gains taxes until they sell their new shares.

The breakup should let both companies better focus on growth opportunities. Even so, Aptiv’s remaining businesses are much more profitable than Versigent’s operations, and we prefer Aptiv for your new buying.

DOW INC. $39 is a hold. The company (New York symbol DOW; Manufacturing sector; Shares outstanding: 717.5 million; Market cap: $28.0 billion; Dividend yield: 3.6%; Takeover Target Rating: Medium; www.dow.com) is one of the world’s largest makers of plastics and specialty chemicals.

On April 1, 2019, DuPont (symbol DD on New York) spun off Dow. As a result, DuPont investors received one Dow share for every three shares they held.

On June 4, 2018, Wyndham Worldwide (old New York symbol WYN) split into two new companies. For every WYN share an investor held, they received one share in each of the new companies—Wyndham Hotels and Resorts, and Wyndham Destinations (now called Travel + Leisure).

Each stock has held up well despite the war in the Middle East, which has increased the cost of air travel and road trips.

Wyndham Hotels is now up 35% since the split, and should continue to benefit from its “asset-light” business model. For its part, Travel + Leisure has jumped over 60%, thanks to pent-up demand for travel following the COVID-19 pandemic.

Since it started up in 1975, Microsoft has successfully adapted to rapid technological change, from the spread of the Internet to the shift to cloud computing. Now, the company is investing heavily in the latest tech revolution—generative artificial intelligence (AI).

That most-recent shift has contributed to the stock’s decline since the start of this year. The drop reflects investor fears about a possible “AI bubble” like the “dot-com bubble,” which peaked in 2000. Many investors worry today’s very high spending on AI infrastructure (chips, datacentres and so on) could lead to big stock price declines for companies if sales and profits fail to materialize.