This 1 Cheap Quantum Computing Stock Could Be a Top Buy for 2026 - Yahoo Finance

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Is Honeywell Stock a Good Buy Right Now? Honeywell International is executing a comprehensive portfolio transformation that could unlock significant shareholder value heading into 2026. Recently, CFO Mike Stepniak outlined aggressive plans to simplify the industrial conglomerate while monetizing quantum computing assets that have appreciated in recent months. Honeywell will separate into three distinct entities. The first entity, its Advanced Materials division, became Solstice Advanced Materials (SOLS) on Oct. 30. The second, its flagship Aerospace division, will become one of the largest pure-play aerospace suppliers post-spin-off. Aerospace CEO Jim Currier emphasized that all capital allocation decisions post-split will be made by the Aerospace leadership team rather than competing across Honeywell's diverse portfolio. The business has posted double-digit volume growth for 13 consecutive quarters and maintains a record $39 billion backlog, with book-to-bill ratios reaching 1.2. Stepniak highlighted that aerospace margins bottomed in the second quarter and should expand throughout 2026, driven by multiple tailwinds. Moreover, pricing improvements on OEM contracts that previously lacked tariff provisions will flow through in the second half. Supply chain health is also improving measurably, with days of inventory declining for the first time in three years as constraints in castings, forgings, and precision machining ease. The automation business will be simplified through reorganization and cost reduction.

The Building Automation segment has emerged as a crown jewel and has delivered high single-digit organic growth driven by data center demand and outcome-based software services through the Forge platform. Segment margins reached 27% and should continue expanding as the Access Solutions acquisition proves accretive. The company recently completed a successful capital raise for Quantinuum, attracting investment from Nvidia (NVDA) and J.P. Morgan (JPM). Stepniak emphasized management doesn't view Honeywell as the natural long-term owner but expects a high-return monetization event within 24 months as the technology matures commercially. What Is the HON Stock Price Target? Management expects organic growth to range between 4% and 7% annually, with 40 to 60 basis points of margin expansion each year. The company views 2025 as a transitional low point, positioning it for a stronger 2026 performance and accelerating growth in 2027 as separation benefits materialize and quantum assets convert to cash. Out of the 24 analysts covering HON stock, 11 recommend “Strong Buy,” one recommends “Moderate Buy,” 11 recommend “Hold,” and one recommends “Moderate Sell.” The average HON stock price target is $237.45, above the current price of $196. www.barchart.com On the date of publication, Aditya Raghunath did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More News from Barchart Related Symbols Symbol Last Chg %Chg NVDA 187.24 -0.88 -0.47% Nvidia Corp SOLS 49.73 +0.40 +0.81% Solstice Advanced Materials Inc HON 204.94 +3.85 +1.91% Honeywell International Inc JPM 334.61 +0.57 +0.17% JP Morgan Chase & Company IONQ 50.76 +2.05 +4.21% Ionq Inc 1/1 Skip Ad Continue watchingafter the adVisit Advertiser websiteGO TO PAGEThis Beaten-Down Dividend Stock is One Analyst's Favorite Idea for 2026 Don’t Miss a Minute of Daily Action Our exclusive midday newsletter highlights top stories, big movers, and breakout charts. By clicking Sign Up Now to receive this free newsletter, you will also receive free Barchart Partner emails. Opt-out any time. See Terms of Service and Privacy Policy for details. Opt-out any time. See Terms of Service and Privacy Policy for details.

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