10 Worst Performing Dow Stocks Year-to-Date

8. Honeywell International Inc. (NASDAQ:HON)

Number of Hedge Fund Holders: 50

Share Price Performance Year-to-Date: 5.98%

Eighth on our list of worst performing Dow stocks is Honeywell International Inc. (NASDAQ:HON), which is an American conglomerate that serves a wide range of industries globally. Its services include aerospace technologies, energy-efficient solutions, specialty chemicals, and advanced materials. The company is planning to spin off its advanced materials segment which is expected to be completed by the end of 2025 or the start of 2026.

While Honeywell’s (NASDAQ:HON) stock has been recovering over the last few weeks, gaining over 10% in the last 30 days, the stock faced some challenges in the first half. In Q1, the company experienced a decline in its Building and Industrial Automation segments due to reduced demand for short-cycle products.

After its Q2 report, the stock declined after its earnings report, where it lowered its EPS guidance due to continued slower recovery in its short-cycle business. Margins were under pressure due to the mix of lower-margin short-cycle business recovery.

On October 8, TipRanks reported that Analyst Nicole Deblase from Deutsche Bank kept a Hold rating on Honeywell (NASDAQ:HON) and reduced the price target from $236 to $226. She made this decision because the company plans to spin off its Advanced Materials business to focus on key areas like aerospace, automation, and energy transition.

The analyst warned that this spin-off might cause a 10% drop in revenue and a similar decrease in earnings per share, although share buybacks could help lessen the impact.

Deblase believes that the Advanced Materials division could still perform well as a separate company, but she showed caution. She pointed out that the company has not done as well as its competitors, which raises questions about its overall business model. While she doesn’t foresee a major breakup of the company beyond this spin-off, she believes any future asset sales will be smaller.