10 Undervalued Aerospace Stocks To Buy According to Analysts

6. Honeywell International Inc. (NASDAQ:HON)

Average Price Target Upside as of August 15: 14.37%

Forward P/E as of August 15: 19

Honeywell International Inc. (NASDAQ:HON) is one of the undervalued aerospace stocks to buy according to analysts. It operates as a diversified technology company that manufactures and sells Aerospace, Performance Material, Building Technologies, and Safety and Productivity technologies in the United States and internationally.

The Aerospace segment of the company provides aircraft engines, avionic technologies, auxiliary power units, and other related products for commercial and defense purposes. It also provides a wide range of sensors used in developing sophisticated aircraft systems. The competitive edge of the company lies in its ability to generate record revenues from a diverse portfolio of products catering to a range of industries.

Honeywell International Inc. (NASDAQ:HON) exceeded analyst expectations by posting a robust second quarter of 2024. The company grew its sales by 4% year-over-year to reach $9.6 billion in revenue, ahead of analyst expectations of $9.4 billion. The Commercial Aerospace, Defense, and Space segment of the company was a strong contender and delivered the 13th consecutive year of double-digit growth. The segment grew 16% year-over-year delivering $3.9 billion in organic sales.

Not only did the company improve its order backlog by 5% to reach a record high of $32 billion, but it was also able to complete strategic acquisitions to boost its technologies and offerings across the board. Some of the notable acquisitions include Air Products LNG and CAES, a pioneer in advanced electronics.

Should you invest in Honeywell International Inc. (NASDAQ:HON)?

Honeywell International Inc. (NASDAQ:HON) can be a good investment and we don’t say this based on a single-quarter performance. If you look at the company’s past 3 year’s performance, you will find it has been able to grow its revenue by 3.21% and net income by 6.09% indicating robust fundamentals. Moreover, despite acquiring two companies, recently, it was able to maintain its free cash low flat at $1.1 billion.

The company is trading at 19 times its forward earnings, while the market average sits at 22. Moreover, its earnings are expected to grow by 8% during the year to reach $2.81. 26 analysts have a consensus buy opinion on the stock with their 12-month median price target of $226 presenting an upside of 14.37% from the current level.