NEW YORK (TheStreet) -- Honeywell International (HON) has been on a tear, up almost 33% in the last year. How much more steam does the company have?
The Aerospace and Automation & Control Solutions segments are driving revenue. These two segments contributed 73.1% of the company's total revenue in 2013. And the Global Aerospace and Defense Industries sectors of the economy are expected to see combined revenue grow by 5% in 2014, according to Deloitte.
Commercial aerospace is where the real growth will take place. By 2023, a 25% rise in commercial aircraft production levels is anticipated globally as economies continue to recover from the severe economic slump that occurred in 2008.
As international markets continue to recover, the growth in global commercial construction will open doors for Honeywell. The company can then offer energy, safety and security solutions for businesses as well as homes.
Is not hard to figure out which economies will lead growth in this area. As always, it will be China, the United States and India. Government spending on infrastructure growth will make a significant contribution to this $15 trillion industry.
We can see that Honeywell's two largest revenue-producing segments have very bright futures, but there's more to profitability than merely increasing revenue. A company's bottom line performance dictates how profitable it is.
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