Honeywell (HON) stock has dropped 12% YTD due to growth concerns, despite strong fundamentals. Bank of America downgraded it to “Underperform,” citing a split into Aerospace and Automation. Market overreaction has led to compelling valuations. Honeywell’s Q3 2025 results show record backlog, 6% organic sales growth, and a focus on innovation.

The company plans to spin off its aerospace division in the second half of 2026. Honeywell will focus on industrial automation, building automation, and process technology. Despite recent stock declines, Honeywell remains optimistic about future growth driven by innovation and R&D investments.

Honeywell’s new technology converts agricultural waste into renewable fuel, catering to maritime decarbonization efforts. Financially, the company expects $5.4 billion in free cash flow for FY 2025, with a 30% upside potential according to analysts. The upcoming split of the aerospace and automation division could unlock value for shareholders.

With a consensus “Moderate Buy” rating from analysts, Honeywell stock offers a healthy dividend yield of 2.43%. RBC Capital highlights the value unlocking potential post-separation. Despite recent corrections, the stock is considered attractive at a forward P/E ratio of 18.4, with potential for a 10% upside from current levels.

Read more at Yahoo Finance: Honeywell Just Got Double-Downgraded After Its Solstice Spinoff, But Analysts Think It Can Still Gain 30% from Here