Latest news with #Honeywell
Yahoo
a day ago
- Business
- Yahoo
3 Industrials Stocks with Mounting Challenges
Industrials businesses quietly power the physical things we depend on, from cars and homes to e-commerce infrastructure. But they are at the whim of volatile macroeconomic factors that influence capital spending (like interest rates), and the market seems convinced that demand will slow. Due to this bearish outlook, the industry has tumbled by 11.2% over the past six months. This drop was worse than the S&P 500's 2.5% decline. Investors should tread carefully as timing cyclical companies is a challenging task, and any misstep can have you catching a falling knife. Keeping that in mind, here are three industrials stocks we're swiping left on. Market Cap: $11.14 billion Founded in 1954, Nordson Corporation (NASDAQ:NDSN) manufactures dispensing equipment and industrial adhesives, sealants and coatings. Why Should You Dump NDSN? Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy Earnings per share were flat over the last two years and fell short of the peer group average Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 4.5 percentage points Nordson's stock price of $206.50 implies a valuation ratio of 18.8x forward P/E. To fully understand why you should be careful with NDSN, check out our full research report (it's free). Market Cap: $144.4 billion Originally founded in 1906 as a thermostat company, Honeywell (NASDAQ:HON) is a multinational conglomerate known for its aerospace systems, building technologies, performance materials, and safety and productivity solutions. Why Do We Think Twice About HON? Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth Estimated sales growth of 3.3% for the next 12 months is soft and implies weaker demand Free cash flow margin dropped by 3.2 percentage points over the last five years, implying the company became more capital intensive as competition picked up Honeywell is trading at $226 per share, or 21.1x forward P/E. Dive into our free research report to see why there are better opportunities than HON. Market Cap: $1.15 trillion Originally founded by Martin Eberhard and Marc Tarpenning in 2003, Tesla (NASDAQ:TSLA) is an electric vehicle company accelerating the world's transition to sustainable energy. Why Does TSLA Fall Short? Tesla's scale advantage in EV production leads to gross margins that exceed incumbents such as General Motors and Ford. However, a softer macroeconomic backdrop and tariff pressures have weighed on automobile sales, which are highly cyclical. The company's execution ability is a question mark given its long history of delays, such as the Cybertruck and Robotaxi launches. Its sizeable investments in projects with uncertain return timelines, like Optimus, also raise skepticism from investors. On the bright side, Tesla's Megapack product solves a critical problem for utilities needing renewable energy storage solutions. This innovation has made the energy segment the most profitable and fastest-growing business line for the company. At $364.59 per share, Tesla trades at 136.6x forward price-to-earnings. If you're considering TSLA for your portfolio, see our FREE research report to learn more. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Business
- Yahoo
Up 30% in a day, is this FTSE 250 stock primed for a come back?
There aren't many instances when the share price of a leading FTSE 250 constituent rises by a third at the ringing of the bell. But that's what happened to Johnson Matthey's (LSE: JMAT) stock yesterday (22 May) when it agreed to sell its Catalyst Technologies business to Honeywell in a £1.8bn deal. The business has been in divesting mode since the new CEO took charge back in 2022. It had already sold its battery material and medical device components businesses, but this deal dwarfs them. Having long been relegated from the FTSE 100, could a new streamlined business now be primed for a major comeback? The sale of its Catalyst Technologies business comes as something of a surprise to me. In its 2024 annual report it described it as 'a core growth driver'. So what changed? The simple answer is: pressure from an activist investor. Last January, its largest shareholder Standard Investments launched a scathing attack on the board, accusing it of a 'continued lack of urgency and incapacity' in arresting its poor share price performance. The spat eventually went public after the company responded to the claims in an open letter. To me, the business had simply overstretched itself. The process technology it designed and licenced for the energy and chemicals sectors was way outside its core competencies of Platinum Group Metals (PGM) and catalytic converters. The sale of Catalyst Technologies is great news for shareholders. It sold it on a cash and debt-free basis at a transaction multiple of 13.3 times earnings before interest tax depreciation and amortisation (EBITDA). The cash return to shareholders will be considerable at £1.4bn. This equates to 800p per share and represents 88% of the expected net sale proceeds of £1.6bn. I think the reaction by the market indicates strong approval of the deal. The cutting edge technology is used to create products for transportation fuels, fertilisers, wood products, paints, coatings and polymers. The fact that Honeywell was prepared to pay such a premium highlights the technology's growth potential. It was simply in the wrong hands to realise that potential. After all the divestments, what's left is PGM and Clean Air. The former is a well-established division with number one positions globally. But it's Clean Air that really interests me. A few years ago, its catalytic converters manufacturing hub was seemingly in long-term decline. Not now though. Over the past few years, production of battery electric vehicles has slowed considerably. At the same time, the regulatory environment has softened toward the traditional internal combustion engine (ICE). The company forecasts that globally an additional 19m light-duty ICE vehicles will now be produced between 2027 and 2034. Each will need cutting-edge catalytic converters. Clean Air sales are expected at more than £2bn in 2027/28, with 90% of that business already won. At the moment it feels to me that the business has turned a corner. But I'm not in a rush to buy into the stock just yet. I want to do more research. Yet with the share price nearly half what it was back in 2021 (despite the price rise), it could be one for an investor seeking a long-term recovery play to consider. The post Up 30% in a day, is this FTSE 250 stock primed for a come back? appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Andrew Mackie has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Fehler beim Abrufen der Daten Melden Sie sich an, um Ihr Portfolio aufzurufen. Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten
Bloomberg
2 days ago
- Automotive
- Bloomberg
Stock Movers: Macy's, Stellantis, Honeywell
On this episode of Stock Movers: - Macy's (M) posted better-than-expected quarterly results — a sign the department-store operator's strategy of focusing on its best-performing locations is starting to pay off despite weakening consumer sentiment and tariff volatility. Comparable-store sales in the fiscal quarter ended May 3 fell less than analysts had anticipated, the company reported on Wednesday, while revenue of $4.6 billion in the period also surpassed the average estimate. - Stellantis NV (STLA) appointed its Americas head Antonio Filosa as chief executive officer, relying on an experienced company insider to turn around the automaker after former boss Carlos Tavares was forced out over slumping sales and profit. Filosa, 51, will take the helm at the maker of Jeep sport utility vehicles and Fiat cars on June 23, Stellantis said Wednesday. He was promoted to head the company's North American operations in October as part of a broader shake-up in the waning days of Tavares' tenure, and has been with the group for more than two decades. - Honeywell International Inc. (HON) agreed to cooperate with Elliott Investment Management and add a member of the activist shareholder to its board as the industrial firm prepares to split into three companies. Honeywell named Marc Steinberg, a partner at Elliott, as an independent director and audit committee member, the Charlotte, North Carolina-based manufacturer said in a statement on Wednesday. The appointment is effective May 31.
Yahoo
2 days ago
- Business
- Yahoo
Honeywell Adds Elliott Executive to Its Board Ahead of Breakup
Honeywell International is adding an executive from activist investor Elliott Investment Management to its board ahead of the industrial conglomerate's split into three companies. The company appointed Marc Steinberg, a partner at Elliott, as an independent director and audit committee member, effective at the end of this month, confirming an earlier report by The Wall Street Journal. North Korea Infiltrates U.S. Remote Jobs—With the Help of Everyday Americans Wall Street Bets the Worst of Trump's Trade War Is Behind It GM Invests in V-8 Engines as It Backpedals on EVs The End of Southwest's 'Bags Fly Free' Threatens Its On-Time Record The Self-Driving Truck Startup That Siphoned Trade Secrets to Chinese Companies The appointment comes with a cooperation agreement between the industrial conglomerate and Elliott. The agreement will give Honeywell standard protections around confidentiality and other matters for a set period. Elliott revealed late last year that it had amassed a more than $5 billion stake in Honeywell and called on the company to break itself apart. Honeywell Chief Executive Vimal Kapur said Wednesday that he appreciated the constructive insight Steinberg has shared with the company in recent months. Steinberg has been at Elliott since 2015 and is responsible for public and private-equity investments across a number of industries. Steinberg previously worked at the boutique investment bank Centerview Partners. He currently sits on the boards of Etsy and Pinterest, as well as two private companies, Syneos Health and Nielsen Holdings. In a letter sent to Honeywell's board late last year, Elliott called for many changes centered on simplification that could create greater value for shareholders. It didn't explicitly ask for board seats. Honeywell, which has a market value of around $145 billion, is separating its aerospace division from its automation business, and spinning off its advanced-materials arm. The breakup is expected to be wrapped up by the second half of next year. Kapur has been pursuing a string of smaller acquisitions to bolster certain Honeywell divisions, particularly in aerospace and defense, which has experienced stronger growth lately. (Elliott has said a stand-alone Honeywell aerospace business could be worth well over $100 billion.) Honeywell in late April raised its full-year guidance for earnings per share, saying it will use pricing and other actions to protect its bottom line in President Trump's trade war. Elliott, meanwhile, just wrapped up a heated boardroom battle at the oil refiner Phillips 66, winning two of the four board seats it wanted. Elliots's stake in Honeywell is one of the firm's largest investments ever. Write to Lauren Thomas at Vail Resorts Shakes Up Leadership After Rocky Ski Season Salesforce Strikes $8 Billion Deal for Informatica Salesforce Deal Buys It Some Time in AI Race Chevron Gets Narrow License to Preserve Oil Assets in Venezuela General Mills Expects $130 Million in Charges from Transformation Initiative
Yahoo
2 days ago
- Business
- Yahoo
Report reveals safety incidents at Geismar plant that left one dead, others hurt was preventable
BATON ROUGE, La. (Louisiana First) — A new federal report released by the U.S. Chemical Safety and Hazard Investigation Board (CSB) revealed a series of safety failures at the Honeywell Performance Materials and Technologies facility in Geismar. The report covered three chemical incidents from October 2021 to June 2024. These incidents involved toxic hydrogen fluoride (HF). One incident led to a fatality, while others caused multiple injuries. Oct. 21, 2021: A corroded gasket failed during a unit startup, spraying HF on a worker's face, neck and ear. According to CSB, the worker lacked proper protective gear and died later that day. Honeywell had known since 2007 that the gasket material was prone to corrosion but had not replaced all of them. Damages were estimated at $14 million. Jan. 23, 2023: A reboiler exploded, releasing over 800 pounds of hydrogen fluoride and 1,600 pounds of chlorine gas. No one was injured, but the blast caused $4 million in damage. A shelter-in-place order was issued, and nearby highways were shut down. Honeywell had approved a replacement plan for the equipment in 2022 but never acted on it due to internal miscommunication. June 7, 2024: A contract worker was seriously injured during maintenance work. When a worker loosened a flange, residual HF trapped in the piping sprayed him in the face. The worker was not wearing proper face or respiratory protection and suffered second-degree burns and spent two days in the hospital. Ex-girlfriend charged in Baton Rouge boat fire incident 'Not only were these three serious incidents completely unacceptable, our investigation found that they also were entirely preventable,' CSB Chairperson Steve Owens said. The CSB found that Honeywell did not maintain its equipment often. CSB said they also failed to spot hazards and put in place safety measures. The agency made several recommendations for Honeywell. These suggestions aim to boost safety systems and enhance oversight. The CSB urged the U.S. Environmental Protection Agency to review HF's health and environmental risks. It also called on OSHA to update safety rules for companies. Nebraska Republican interrogated over GOP megabill during tense town hall Jailed reality TV star Joe Exotic rips Trump Chrisley pardons Will Southwest lose customers over new bag policy, seating plan? Black bear roams Central neighborhood on Wednesday morning Schumer rips Trump plan to privatize Fannie Mae, Freddie Mac Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
