Readers of this space know that my investment bias is toward large-cap companies with demonstrated business models that have a competitive advantage in established markets, preferably with a favorable global trend as a support. And with the above in mind, Honeywell is worth a review.

Honeywell (NYSE: HON) is one of the world's leading automation / control manufacturers for heating, air conditioning, ventilation systems and a key aerospace contractor. Further, Honeywell has the diversity Wall Street likes -- in this case, business diversity within a company.

Thermostats and aircraft maintenance would seem like business lines at opposite ends of the spectrum, but they are at Honeywell's core, and they speak to the company's strength.

Analysts like HON's aerospace division (36% of revenue), which manufactures cockpit controls, power generation equipment and wheels/bakes for commercial/military aircraft. The division also makes jet engines for regional/business jet manufacturers.

Further, analysts really like HON's automation/control division (35% of revenue), which makes home/office climate control equipment. Analysts see solid demand for HON's next-generation, energy-reducing controls, as businesses and homeowner re-emphasize energy efficiency and upgrade heating / cooling systems, due to high energy prices. The Reuters F2008/F2009 EPS consensus estimates for HON are $3.79/$4.30.

The risks? Along with the company's skilled labor costs, analysts are keeping an eye on HON's component and raw material costs, as well as on global economic growth, due to the company's above-average sensitivity to the global economic cycle.

The First Call mean rating for HON is: Buy [16 firms]. Mean 2008 target: $67 [high: $72, low: $62].

Stock Analysis: Honeywell is a moderate-risk stock not suitable for low-risk investors. Investors with an investment horizon longer than two years should be rewarded from HON's shares. Sell / Stop Loss: $48.

Disclosure: Lazzaro has no positions in stocks. In addition to private real estate holdings, he owns corporate and municipal bonds, and cash certificates of deposit.