Honeywell Technologies: Good Revenue Acceleration And Earnings Growth Prospects At A Reasonable Valuation
Honeywell Technologies was rated Buy, supported by strong order growth of 16% y/y in Q2 compared to 4% sales growth, which signals likely revenue acceleration as backlog converts. The company is on track with structural cost reductions and portfolio simplification, targeting 22%+ segment margins exiting fiscal year 2026 and further improvement in 2027.
Why it matters — HON watchers would care because order growth outpacing sales suggests future revenue acceleration and margin expansion are expected from the company's ongoing cost-cutting and portfolio simplification efforts.