Honeywell International incorporation is a company based in the United States. The company designs, manufactures, and sells industrial and aviation products around the world. The company sells products like APUs, airplane engines, other internal aviation systems, building control systems, automation control, and other safety and production products. The company was founded in 1985.
Why You Should?
- Honeywell is a great reopening play in an investor’s portfolio. The company saw a drop in demand for some of its industrial products as the industrial and commercial economy shut down. However, as this pandemic comes to an end, the industrial economy will cause an increase in demand for the products that Honeywell sells.
- Honeywell sells a wide range of products and services to its customers. From aviation parts to cloud-based services and supercomputers, the company operates in a wide range of products. This will help the company gain new customers and retain them for a longer period of time. This will benefit the company and its investors.
- The company will see positive impacts from a Biden administration. The current administration wants to sign massive trade deals and end trade issues (like tariffs) implemented by the previous administration. This will help Honeywell see an increase in international sales. This will also benefit investors in the company.
- The company has seen some positive impacts from the pandemic. The company has seen higher sales in its medical division as they manufacture PPE and N95 masks. The company also provides critical components for hospital management in its building solutions segment. This has benefited the company and its shareholders.
- Honeywell will positively benefit from a booming housing and construction market. In order to make new houses, companies will need to purchase products like masks, construction materials, and other building control equipment. As these products will see rising demands, this will benefit the company and its investors.
Why You Should Not?
- Honeywell faces tough competition in the industrial sector from companies like 3M, Rockwell Collins, Carrier, and many others. This competition might hurt the company and its investors in the future.
- The COVID-19 pandemic has depressed the demand for some of the company’s products as the industrial economy shut down and as new projects got canceled or delayed. This hurt the company and its investors in the short and mid-term and might continue to hurt these individuals in the future as well.
I think that Honeywell is a great long-term investment due to its position as a good reopening play, positive impacts from the pandemic, positive impacts from the Biden administration, a booming housing market, as well as a wide range of products and services. However, tough competition and negative impacts from the pandemic might hurt the company in the future.