Global diversified technology and manufacturing company
Honeywell International Inc.
) recently authorized a new share repurchase program as part of
its corporate strategy to provide attractive risk-adjusted
returns to its stockholders. The new share buyback program
replaces the erstwhile $3 billion share repurchase policy that
was completed in 2011.
Under the new share repurchase program, Honeywell can repurchase
up to $5 billion worth of shares over a period of time through
open market transactions. The strategic move signifies an
inherent strength in the company's balance sheet and working
capital management that gives it enough confidence to generate
adequate cash flow to deliver shareholder value.
Over the years, Honeywell has consistently returned significant
cash to its shareholders through dividends and share repurchases.
Honeywell's diversified business portfolio has the potential to
earn consistent above-average returns and mitigate operating
risks. The company's diligent focus on working capital
management, free cash flow generation and a conservative balance
sheet remain the key positives amid a challenging macroeconomic
Based in Morris Township, NJ, Honeywell manufactures a wide range
of aerospace products and services, control, sensing and security
technologies for buildings, homes and industry, turbochargers,
automotive products, specialty chemicals, electronic and advanced
materials, process technology for refining and petrochemicals and
energy efficient products and solutions for homes, business and
Honeywell organizes its business into four operating segments -
Aerospace, Automation and Control Solutions, Performance
Materials and Technologies, and Transportation Systems.
Honeywell's diversified business portfolio mitigates operating
risks and enables it to earn consistent above-average returns.
Honeywell also has a Zacks Rank #3 (Hold). Other notable
companies in the industry include
Hutchison Whampoa Ltd.
Raven Industries Inc.
), each carrying a Zacks Rank #2 (Buy).
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