It's a Wall Street axiom, but one that's worth repeating in choppy markets: diversity provides greater safety. That's diversity across a portfolio, and diversity within a company, and a good example of the latter is
Honeywell International Inc. (NYSE:
HON).
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/brakes 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-efficient controls as businesses and homeowner re-emphasize energy efficiency, due to high energy prices.
The Reuters F2007/F2008 EPS consensus estimates for HON are $3.16 to $3.73.