Tuesday, March 10

Is Honeywell (HON) One of the Best NASDAQ Stocks to Buy According to Hedge Funds?


Honeywell International Inc. (NASDAQ:HON) is one of the best NASDAQ stocks to buy according to hedge funds. Earlier on January 29, Honeywell reported its full-year 2025 financial results, highlighting a record backlog of over $37 billion. For Q4, sales reached $9.8 billion, a 6% increase driven by strong demand in Aerospace Technologies and Building Automation. While reported operating income fell 35% to $996 million due to one-time impairment charges and litigation settlements, adjusted segment profit rose 23% to $2.3 billion. The company also accelerated the timeline for the spin-off of Honeywell Aerospace, which is now expected to be completed as an independent public company in Q3 2026.

For 2025, Honeywell achieved total sales of $37.4 billion, reflecting 8% growth and exceeding the high end of its original guidance. Full-year EPS remained flat at $7.57, but adjusted EPS grew 12% to $9.78. The Aerospace Technologies segment was a primary performer, with 12% organic growth for the year, led by commercial aftermarket and defense demand.

Is Honeywell (HON) One of the Best NASDAQ Stocks to Buy According to Hedge Funds?
Is Honeywell (HON) One of the Best NASDAQ Stocks to Buy According to Hedge Funds?

Looking toward 2026, Honeywell International Inc. (NASDAQ:HON) issued an optimistic outlook with expected sales ranging from $38.8 billion to $39.8 billion and organic growth of 3% to 6%. The company anticipates adjusted EPS between $10.35 and $10.65. Chairman and CEO Vimal Kapur noted that the recent completion of the Solstice Advanced Materials spin-off and the classification of certain warehouse businesses as assets held for sale are critical steps in the company’s ongoing transformation toward higher profitable growth.

Honeywell International Inc. (NASDAQ:HON) engages in the aerospace technologies, industrial automation, building automation, and energy and sustainable solutions businesses in the US, Europe, and internationally.

While we acknowledge the potential of HON as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 40 Most Popular Stocks Among Hedge Funds Heading Into 2026 and 33 Stocks That Should Double in 3 Years.

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