How Honeywell International Inc. (HON) Earnings Could Send Shares to New Record Highs

Arguably the biggest opportunity Honeywell International Inc. (NYSE:HON) has is in the aerospace industry. The Boeing Company (NYSE:BA) expects industrywide demand for 35,000 aircraft over the next two decades, translating to revenue of $4.8 trillion. As a major supplier to Boeing and other aircraft manufacturers, Honeywell should be able to get its share of that pie.

Honeywell International Inc. (NYSE:HON) is also looking for growth beyond aerospace. In June, the company completed its acquisition of RAE Systems, which specializes in making systems and software to help detect gases and radiation. The move will boost Honeywell’s existing lines of hand-held sensors and detection devices and help it serve its government, corporate, and public-safety clients with more comprehensive offerings.

In the Honeywell International Inc. (NYSE:HON) earnings report, look for management to comment on the recent investigation of a fire in a The Boeing Company (NYSE:BA) 787 Dreamliner aircraft. Investigators are looking at a Honeywell emergency-locator transmitter as a potential source of last week’s fire, and given the notoriety of the Dreamliner’s recent woes, any news will get a lot of attention. In the long run, though, Honeywell International Inc. (NYSE:HON) appears poised to keep growing no matter what comes of the investigation.

Motley Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger.

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