If You Invested $1000 in Honeywell International Inc. a Decade Ago, This is How Much It'd Be Worth Now

For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.

Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.

What if you'd invested in Honeywell International Inc. (HON) ten years ago? It may not have been easy to hold on to HON for all that time, but if you did, how much would your investment be worth today?

Honeywell International Inc.'s Business In-Depth

With that in mind, let's take a look at Honeywell International Inc.'s main business drivers.

Honeywell International Inc. has solid footprints in the aerospace industry, with commercial aviation and defense being two major business sources. Opportunities within unmanned aerial systems (UAS) and urban air mobility (UAM) industries are encouraging too. The company’s unit — Unmanned Aerial Systems — is working to gain leverage from these promising markets. Launch of SATCOM — by far smallest and lightest satellite communication system for unmanned aerial vehicles — is a step forward in the direction.

Based in Morris Township, NJ, Honeywell is a global diversified technology and manufacturing company, with a wide range of aerospace products and services. The company has operations in the United States, Europe, Canada, Asia and Latin America. Honeywell operates through four business segments as discussed hereunder:

Aerospace (33.2% revenues came from this segment in third-quarter 2022) is a leading global provider of integrated avionics, engines, systems and service solutions for aircraft manufacturers, airlines, business and general aviation, military, space and airport operations. In April 2018, the segment announced its decision to develop laser communication products for satellite communication in collaboration with market partners.

Performance Materials and Technologies segment (30.4%) offers leading technologies and high-performance materials, including hydrocarbon processing technologies, catalysts, adsorbents, equipment and services. This segment includes its wholly owned subsidiary, Honeywell UOP, which is an international supplier and licensor of process technology, and consulting services to the petrochemical and petroleum refining industries.

Honeywell Building Technologies segment (17%) offers environmental & energy solutions, security and fire, and building solutions. Some of the notable products offered by the segment include sensors, switches, control systems and instruments for energy management as well as advanced software applications for building control and optimization.

Safety and Productivity Solutions (19.3%) includes sensing & productivity solutions and industrial safety, as well as the recently acquired Intelligrated business.

Bottom Line

Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Honeywell International Inc. ten years ago, you're likely feeling pretty good about your investment today.

A $1000 investment made in November 2012 would be worth $3,626.54, or a gain of 262.65%, as of November 18, 2022, according to our calculations. This return excludes dividends but includes price appreciation.

The S&P 500 rose 190.21% and the price of gold increased -1.18% over the same time frame in comparison.

Analysts are forecasting more upside for HON too.

Recovery in commercial flight hours, strong fire products and building management system sales, strong demand in the marine products business and strength in gas processing orders are key growth drivers for Honeywell. Following a strong third quarter, the company improved its earnings guidance for 2022. Pricing actions and cost-control measures support the company’s margins. Strong free cash flow generation capacity supports the company’s shareholder-friendly activities. However, volume softness due to supply-chain disruptions, especially semiconductors and parts shortages, is concerning. Weakness in the Safety and Productivity Solutions unit due to lower personal protective equipment and warehouse automation volumes is also worrisome. Raw material cost-inflation and adverse foreign currency movements are other headwinds.

The stock is up 20.75% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 8 higher, for fiscal 2022. The consensus estimate has moved up as well.
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