Tuesday, December 27, 2016

Is Honeywell International a Stock to Buy For 2017?

Following Honeywell International Inc.'s (NYSE:HON) recent 2017 outlook meeting, it's a good time to reassess whether the stock is a good value investment. Let's factor in management's guidance to answer this question.

The investment thesis behind Honeywell International Inc.

This may seem esoteric, but bear with me: The best argument for buying the stock rests with its underlying free cash flow generation. With good FCF, a company can do many things, such as increase dividends, buy back shares (which enhances earnings), engage in value-adding acquisitions, or even simply pay off debt.

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