Growth and valuation
For this reason, and a few others, analysts are generally positive about Honeywell’s potential for growth. The company is expected to earn $4.94 for 2013, and this is projected to increase to $5.49 and $5.95 in 2014 and 2015, respectively, for an average forward growth rate of just under 10%. That’s not too bad for a company trading at 14.9 times forward earnings.
Honeywell has a very strong balance sheet, which features, among other things, over $5 billion in cash. They are also a good dividend payer, currently yielding 2.23% annually, and they have raised the payout every year over the past decade except for one.
Of the companies listed here, all except Rockwell Collins are well-diversified and give investors good exposure to many industries. General Electric Company (NYSE:GE) is a great addition to any portfolio, provided you don’t mind a lot of financial exposure. United Technologies has a lot to like as well, however I believe that the trend toward energy efficiency is going to be long-lasting and not just a passing fad as some believe. As a result, I like Honeywell since I believe they have the most to gain from this kind of long-term trend.
The article This Aerospace Giant Could Benefit From the “Green” Trend originally appeared on Fool.com and is written by Matthew Frankel.
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