Honeywell's Aerospace Unit Craters as Automation Business Struggles with Price Action

Honeywell International's three-way split is complete, leaving behind an aerospace unit and a pure-play automation company. The latter, trading as Honeywell Technologies (HON), has fallen 51.5% in six months despite improving fundamentals.

The spun-out aerospace unit, HONA, cratered over 20% on its first independent earnings report and cut forward guidance. However, some argue that HONA's issues are supply-side, not demand-side, with an $18.2 billion backlog.

Honeywell Technologies' Q2 results showed orders growing 16% year-over-year against just 4% revenue growth, a $20 billion backlog, and a 22%+ margin target. However, technical signals on the stock are bearish, with every single indicator pointing lower.