Honeywell Dumps Productivity Unit In $1.4 Billion Deal With Brady
On Monday, Honeywell International Inc. (NASDAQ:HON) agreed to sell its Productivity Solutions and Services unit to Brady Corporation (NYSE:BRC) for $1.4 billion in cash.
The deal, expected to close in the second half of 2026, is part of Honeywell’s ongoing portfolio simplification ahead of its planned Aerospace spin-off in the third quarter of 2026. The PSS business generated about $1.1 billion in 2025 revenue.
The move follows prior divestitures, including the spin-off of Solstice Advanced Materials (NASDAQ:SOLS), as Honeywell sharpens focus on its core operations.
Technical Analysis
Honeywell is currently trading within a strong technical setup, positioned significantly above its 200-day simple moving average (SMA), which suggests a bullish trend. The stock is trading 2.6% above its 20-day SMA, indicating positive short-term momentum, while it is 1.6% below its 50-day SMA, suggesting some resistance at that level.
The relative strength index (RSI) is at 53.49, indicating neutral momentum, which suggests that the stock is neither overbought nor oversold at this time. The moving average convergence divergence (MACD) is above the signal line, which is a bullish sign, and the histogram is positive, indicating strengthening momentum.
- Key Resistance: $234.96 — This level has historically acted as a barrier for upward movement.
- Key Support: $228.25 — This level may provide a floor for price action if tested.
Honeywell’s 12-month performance shows a gain of 27.58%, reflecting strong long-term growth and positioning the stock favorably within its 52-week range, which has seen a high of $248.18 and a low of $186.76. This performance indicates that the stock is currently trading closer to its highs, suggesting positive investor sentiment.
Earnings & Analyst Outlook
The countdown is on: Honeywell is set to report earnings on April 23, 2026 (confirmed).
- EPS Estimate: $2.32 (Down from $2.51)
- Revenue Estimate: $9.28 billion (Down from $9.82 billion)
- Valuation: P/E of 33.7x (Indicates premium valuation)
Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $252.23. Recent analyst moves include:
- Barclays: Overweight (Lowers Target to $255.00) (April 1)
- BMO Capital: Initiated with Outperform (Target $273.00) (March 27)
- Morgan Stanley: Equal-Weight (Raises Target to $245.00) (March 12)
Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for Honeywell International, highlighting its strengths and weaknesses compared to the broader market:
- Value Rank: 23.77 — Trading at a steep premium relative to peers.
- Growth Rank: 22.55 — Indicates potential for growth but may be limited.
- Quality Rank: 62.64 — Balance sheet remains healthy.
- Momentum Rank: 53.82 — Stock is showing moderate performance indicators.
The Verdict: Honeywell International’s Benzinga Edge signal reveals a balanced profile, with moderate momentum and quality scores, suggesting that while the stock has growth potential, it is trading at a premium valuation compared to its peers.
Top ETF Exposure
- Vanguard Wellington Dividend Growth Active ETF (NASDAQ:VDIG): 4.07% Weight
- Invesco Aerospace & Defense ETF (NYSE:PPA): 4.68% Weight
- Cambiar Aggressive Value ETF (NYSE:CAMX): 5.00% Weight
Significance: Because HON carries significant weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.
HON Stock Price Activity: Honeywell International shares were up 0.06% at $233.70 during premarket trading on Monday, according to Benzinga Pro data.
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