Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Will Honeywell Cool Off in 2013?

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

As 2013 begins, now's a good time to look at the future prospects for the stocks you own. If you don't know where a company's headed in the next year and beyond, then it's impossible to make an informed decision about whether you should add the stock to your portfolio -- or sell it if you already own it.

Today, I'll look at Honeywell (NYSE: HON  ) . The components manufacturer had a hot 2012 as it managed to focus its energies on pockets of strength even in an economy that has struggled overall. Will that strategy work this year as well? Read on to learn more about Honeywell's prospects for 2013.

Stats on Honeywell

Average Stock Target Price


Full-Year 2012 EPS Estimate


Full-Year 2013 EPS Estimate


Full-Year 2012 Sales Growth Estimate


Full-Year 2013 Sales Growth Estimate


Forward P/E


Source: Yahoo! Finance.

Will Honeywell heat up in 2013?
Analysts have modest expectations for Honeywell this year, but if they're correct, then investors could see modest gains of around 8% on the stock. Even better, earnings are seen rising by almost 10% in 2013, which would open the door to a more attractive multiple even if Honeywell only meets expectations.

The biggest difficulty that Honeywell is having to deal with right now comes from all the uncertainty around Boeing (NYSE: BA  ) . Between multiple problems with its 787 Dreamliner and an ongoing labor dispute with its engineers' union, Boeing hasn't inspired confidence lately that it's operationally up to the task of handling its huge backlog. With Honeywell joining General Electric (NYSE: GE  ) , Spirit AeroSystems (NYSE: SPR  ) , and a host of other suppliers for Boeing aircraft that are counting on success from the aircraft manufacturer, the specter of an FAA review of the Dreamliner and the attendant nervousness will keep a lid on enthusiasm for the sector at least in the near term.

To overcome that challenge, Honeywell has to build other sources of revenue. Its deal with Textron (NYSE: TXT  ) to provide components for Cessna aircraft is a step in the right direction, and ideally, Honeywell will be able to add more aircraft manufacturers to its list of clients.

One promising area comes from the trend toward integrating smartphone technology with remote control devices. Honeywell has several products that are linked to smartphone apps, allowing remote security monitoring as well as allowing adjustments to heating and cooling systems, and it continues to work on further advances to take advantage of wireless technology.

Honeywell has plenty of potential in 2013. If it can successfully keep its client base as broad as possible, Honeywell is well poised to prosper from a favorable environment in the aerospace industry as well as its other businesses.

Stay innovative
The wave of the future is always coming, and smart investors look for ways to profit from new trends. Motley Fool co-founder David Gardner has had particular success in choosing revolutionary stocks with disruptive potential and recommending them before Wall Street finds them. Get a special look at David's Supernova service with a personal tour; click here to get instant access right now.

Click here to add Honeywell to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2192751, ~/Articles/ArticleHandler.aspx, 9/27/2016 1:24:18 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 4 hours ago Sponsored by:
DOW 18,094.83 -166.62 -0.91%
S&P 500 2,146.10 -18.59 -0.86%
NASD 5,257.49 -48.26 -0.91%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/26/2016 4:01 PM
HON $115.94 Down -0.04 -0.03%
Honeywell Internat… CAPS Rating: ****
BA $130.57 Down -1.21 -0.92%
Boeing CAPS Rating: ****
GE $29.54 Down -0.35 -1.17%
General Electric CAPS Rating: ****
SPR $43.88 Down -0.12 -0.27%
Spirit AeroSystems… CAPS Rating: **
TXT $39.20 Down -0.25 -0.63%
Textron CAPS Rating: ****