Is Honeywell Stock a Buy After Its Latest Structural Shakeup?

On June 29, Honeywell completed its multistage portfolio transformation into three independent companies: Honeywell Technologies (NASDAQ: HON), Honeywell Aerospace (NASDAQ: HONA), and Solstice Advanced Materials (NASDAQ: SOLS).Solstice Advanced Materials, which makes refrigerants and other products, spun off last October. The latest spinoff gives Honeywell investors one Honeywell Aerospace share for every two Honeywell Technologies shares held as of June 15, with cash paid for fractional shares. The move, done in a 1-for-2 reverse split, leaves Honeywell Technologies as a pure-play industrial automation company.Not all spinoffs work. The moves sometimes lead to additional system separation costs and management distraction that can depress earnings, at least over a few quarters. Honeywell has also given away its aerospace division, a resilient, high-growth segment with a defense and commercial backlog of more than $19 billion. The new Honeywell company may be more sensitive to economic cycles and tariff risks, but here are three reasons why the industrial stock may be a buy:Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool