The Best and Worst Dow Stocks for the Next 12 Months

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18. Honeywell International Inc. (NASDAQ:HON)

Upside Potential: 13.0%

Market Cap: $127 billion

Number of Hedge Fund Holders: 67

Honeywell International Inc. (NASDAQ:HON) is a diversified technology and manufacturing company that serves sectors including aerospace, building technologies, performance materials, and industrial automation.

While the company recently gave a lacklustre outlook for FY 2025, investors are currently focusing on the corporate split announced in early February. By the second half of 2026, the company aims to separate into three listed companies: Honeywell Automation, Honeywell Aerospace, and Advanced Materials. The separation is said to have resulted from the push from activist investor Elliott Management, which revealed a $5 billion stake in the company around mid-November.

According to a CNBC report, Tony Bancroft, a portfolio manager at Gabelli Funds, valued the aerospace and automation businesses at $104 billion and $94 billion, respectively. However, he also advised that the full value might be realized in a longer time frame rather than in the near term.

According to the same report, an analyst from RBC Capital also saw limited potential upside in the near term but indicated substantial value generation in the year after several similar spin-offs.

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