"It has reinvested in product research and development and expanded its global footprint and is positioned well to benefit from the replacement cycle in aerospace and autos and after-market growth, the global energy refining cycle, energy-efficiency initiatives and stronger market-share growth in turbochargers."
That's quite a mouthful of good news. With the restructuring and HON's exposure to these profitable industries there are plenty of reasons to anticipate upside in revenue, margins and cash flow.
By examining HON's return on invested capital, which rose through the first quarter of 2013 to nearly 15% and comparing it to the very important trailing 12-month (TTM) revenue per share, which has been in modest decline, we may be viewing an opportunity unfolding before our very eyes.After its stellar stock price performance is it possible that HON is ready to be shorted by the hedge funds and other short sellers? After all, the share price is ominously close to the consensus analysts' one-year price target of just above $82. This is not a shout-out to short the stock. Yet the time to do so is when companies like HON and BA have hit new highs during the slower, more correction-oriented months of July through October.