A Game Changer for Honeywell Stock?
Honeywell International Inc. (NYSE:HON) is hoping that its military satellite communications and “JetWave” hardware could be the next big boon for Honeywell stock.
The company will use its satellite communications hardware in conjunction with the International Mobile Satellite Organization’s (IMSO) in-flight broadband service in order to provide a secure and high-speed environment to improve battlefield communications.
“…JetWave provides high-speed, reliable connectivity, when and where the warfighter need it, regardless of mission or geographic location,” said Carey Smith, president, Defense and Space, Honeywell Aerospace. (Source: “Honeywell To Connect The Modern Battlefield With JetWave Satellite Communications Hardware,” PR Newswire, October 31, 2016.)
Honeywell stock faced adversity earlier this month when the company’s shares fell 7.5% due to weak demand for business jets. While the company believes that business aircraft sales will remain low at least through 2017—possibly into 2019—Honeywell may look to its other branches to help boost the value of HON stock. (Source: “Honeywell Drops Most in Five Years as Private-Jet Slump Persists,” Bloomberg, October 7, 2016.)
While Honeywell stock has been steadily climbing back up since its early October dip (recovering nearly three points since dropping over 8.5 points), Honeywell’s continuing expansion into satellites and Internet of Things (IoT) products like smart heaters and water sensors could be the next big catalyst for the company.
Accenture Plc (NYSE:ACN) conducted a worldwide survey in which 84% of business leader respondents said they were ready to create new service-based income streams from industrial IoT, but only seven percent claimed to have a comprehensive strategy for the tech’s integration. Accenture values global industrial IoT at potentially $14.2 trillion worldwide by 2030. (Source: “Winning with the Industrial Internet of Things,” Accenture, last accessed October 31, 2016.)
That’s a lot of market potential for Honeywell to capitalize on.
Honeywell stock is traditionally seen as a stable choice, placing on the lower end of NASDAQ’s “RiskGrades” spectrum. A lot of this goodwill is predicated on the solid leadership of the company’s well-respected, long-time CEO David M. Cote. But with Cote stepping down and being replaced by COO Darius Adamczyk at the end of March 2017, coupled with the company’s industrial IoT potential, Honeywell’s traditionally reliable and stable stock could be in for a shake-up in the near future.