Honeywell International Inc. (HON): A Bull Case Theory

We came across a bullish thesis on Honeywell International Inc. on Value investing subreddit by wisefox200. In this article, we will summarize the bulls’ thesis on HON. Honeywell International Inc.'s share was trading at $227.24 as of January 28th. HON’s trailing and forward P/E were 22.85 and 20.16 respectively according to Yahoo Finance.

Honeywell International Inc. engages in the aerospace technologies, industrial automation, building automation, and energy and sustainable solutions businesses in the United States, Europe, and internationally. HON presents a classic value-unlocking opportunity, appealing to investors seeking steady, long-term upside rather than rapid gains. The company is a diversified conglomerate, which naturally limits explosive stock moves, but its strategic asset separations create meaningful catalysts.

The materials business spin-off in October 2025 set the stage, and the upcoming Aerospace separation in 2026 is expected to unlock further value by allowing the standalone business to trade at a higher multiple. Beyond the spin-offs, Honeywell holds a significant 54% stake in Quantinuum, a quantum computing firm valued at roughly $5 billion, effectively embedding a “free option” into Honeywell’s stock. With quantum computing poised as a potential next-generation technology, Quantinuum’s anticipated IPO in 2027 could provide substantial upside to Honeywell shareholders. The stock currently trades at $191, with price targets in the $230–260 range, offering meaningful appreciation potential.

Fundamentally, Honeywell is reasonably valued around 20x P/E and provides a 2.5% dividend, supported by strong cash flow generation. While top-line growth is modest, the company’s robust balance sheet and strategic spin-offs position it well for both capital returns and potential rerating.

For investors, Honeywell combines the stability of a diversified industrial with the optionality of emerging technologies like quantum computing, making it a compelling, if “boring,” investment with clear catalysts for value realization. Overall, Honeywell exemplifies a patient, strategic play where structural corporate moves, embedded optionality, and solid fundamentals converge to create a multi-year growth and rerating opportunity.

Previously we covered a bullish thesis on GE Aerospace (GE) by Asymmetric Ventures in May 2025, which highlighted its strong MRO services, global network, and predictive maintenance technology supporting long-term growth. The stock has appreciated approximately 23.60% since our coverage. The thesis still stands as GE remains a leader in aerospace. wisefox200 shares a similar focus but emphasizes Honeywell’s value-unlocking spin-offs and stake in quantum computing.

Honeywell International Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 76 hedge fund portfolios held HON at the end of the third quarter which was 67 in the previous quarter. While we acknowledge the risk and potential of HON as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than HON and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.