Honeywell: The Pivot Appears To Be Working

Summary:

- Honeywell reported better-than-expected Q4 2018 results and its management team raised their fiscal 2019 guidance.

- Management's recent pivot - i.e., asset spinoffs and restructuring efforts - is already paying dividends but, more importantly, Honeywell appears to be well-positioned for 2019 and beyond.

- I am long Honeywell and I plan to stay long for the foreseeable future.

Honeywell ($HON) ended 2018 with a bang. The industrial conglomerate reported Q4 2018 financial results that beat the top and bottom line estimates, and its management team raised their fiscal 2019 guidance. The stock has been on an upward trend since the start of 2019, which was helped by the Q4 beat and raise, but HON shares are still underperforming the broader market over the last year.

However, as I have consistently described over the last few years, I believe that the pullbacks in HON shares should be viewed as long-term buying opportunities. Moreover, in my opinion, the company's Q4 and full-year 2018 results show that the long-term bullish thesis remains intact, even after factoring in the recent pivot (i.e., restructuring efforts and asset spins).