1. Honeywell International Inc. (NASDAQ:HON)
Short Interest as % of Shares Outstanding: 0.89%
Number of Hedge Fund Holders: 50
Honeywell International Inc. (NASDAQ:HON) is a multinational conglomerate with a strong footing in the global market due to its broad and innovative portfolio spanning aerospace technologies, building automation, energy and sustainable solutions, and industrial automation. The company has been advancing battery technology, and its Honeywell Ionic battery energy storage system (BESS) is evidence of this focus. The system is designed to optimize energy costs while offering reliable backup power and reducing carbon emissions. Its flexibility is highlighted by its ability to support different battery chemistries and scale from around 700 kilowatt-hours (kWh) to 300 megawatt-hours (MWh).
In the EV sector, the company has made significant strides with its battery safety sensors. These sensors are essential for the early detection of thermal runaway, a critical safety feature for EVs and energy storage systems. The company’s current sensors, including the CSNV, CSHV, and CSSV series, provide accurate battery state measurements and adhere to international safety standards. Furthermore, the BAS Series and BPS Series offer advanced detection capabilities for thermal runaway and particulate matter within battery packs, which improves overall safety and dependability.
Its investment in the battery technology sector is also significant. The company’s $27.5 million investment in ESS Tech signals its dedication to advancing long-duration battery storage solutions. This investment aligns with the company’s broader goal of supporting sustainable energy technologies and expanding its footprint in the battery market. It tops our list of the best battery stocks to buy now.
In the second quarter, 50 hedge funds had stakes in Honeywell International (NASDAQ:HON), with total positions worth $1.08 billion. Millennium Management has increased its stake in the company by 179% to 1.6 million shares worth $351.117 million and is the most significant shareholder, as of the second quarter.
Honeywell International’s (NASDAQ:HON) diverse business segments contribute to its steady growth, regardless of market fluctuations. In the second quarter, it reported a 5% increase in sales, reaching $9.6 billion. Its non-GAAP adjusted EPS was $2.49. The Aerospace Technologies segment saw a 16% rise in revenue compared to the previous year, driven by increased flight hours, higher chipset deliveries, and improved supply chain conditions.
Similarly, the Building Automation segment’s revenue grew by 4% year-over-year, due to strong performance in data centers, healthcare, and energy services. The Energy and Sustainability Solutions segment also saw a 2% revenue increase, supported by strong demand for fluorine products in Advanced Materials.
Additionally, the company’s growth trajectory is supported by its strategic acquisitions, such as CAES Systems and Air Products’ liquefied natural gas process technology and equipment business, which were announced in June and July, respectively. These acquisitions are expected to strengthen the company’s capabilities and market position further.
While we acknowledge the potential of Honeywell International Inc. (NASDAQ:HON) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than the ones mentioned on our list but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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