Honeywell International Inc. (NASDAQ:HON) is one of the Best Quantum Computing Stocks to Buy and Hold for 5 Years. On September 17, the U.S. Department of Energy’s Office of Technology Commercialization (OTC) announced an expansion of Quantum-in-Space Collaboration with 3 new signatories: IonQ, Honeywell International Inc. (NASDAQ:HON), and the Electric Power Board of Chattanooga (EPB). Notably, the defense and space industry continues to rapidly evolve with high priorities on security and resiliency by governments as well as other critical industries.
Furthermore, the Collaboration would leverage Honeywell International Inc. (NASDAQ:HON)’s quantum optical payload technology, expertise in satellite communications, and onboard quantum computing to provide quantum-secured communications and quantum sensing.
Earlier, Honeywell International Inc. (NASDAQ:HON) announced a ~$600 million equity capital raise for Quantinuum, which is the developer of the world’s highest-performing quantum computer. This was done at the pre-money equity valuation of $10 billion. The capital raise is expected to support Quantinuum’s advancement of quantum computing at scale.
Madison Investments, an investment advisor, released its Q1 2025 investor letter. Here is what the fund said:
“This quarter we want to highlight Honeywell International Inc. (NASDAQ:HON) as a high-quality relative yield investment in the Industrial sector. HON is a premier industrial company with leading positions in Aerospace (40% of revenues), Industrial Automation (26%), Building Automation (17%) and Safety and Productivity Solutions (17%). A common theme across these end markets is that HON embeds its products into the operations of its customers, which generates long-term recurring revenue from aftermarket products/services. We believe HON has a sustainable competitive advantage due to its scale, high customer switching costs, intangible assets, and long history of innovation. Many HON products are a low percentage of its customers’ total costs, and these products get designed into products and operations, which provide a long-term source of consistent revenue.
HON recently announced plans to break the company into three separate entities by the end of 2026, which we believe will create shareholder value. The three stand alone companies will be Honeywell Aerospace, Honeywell Automation, and Advanced Materials. These businesses are likely to have better focus, different levels of capital intensity, and different growth profiles as stand-alone entities. Activist investor Elliott Management also owns a $5 billion stake, which is the largest activist investment the firm has made in its history. Valuation appears attractive at 18x forward expected earnings, which is a less than market multiple…” (Click here to read the full text)
While we acknowledge the potential of HON to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than HON and that has 100x upside potential, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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