We recently compiled a list of the Top 12 Stocks to Buy According to Bourgeon Capital. In this article, we are going to take a look at where Honeywell International Inc. (NASDAQ:HON) stands against the other stocks.

Bourgeon Capital Management LLC is an investment advisory firm headquartered in Darien, Connecticut. Founded in 1999 by seasoned financial professional John Aniblo Zaro, the firm specializes in actively managed, separate accounts with investment portfolios consisting primarily of stocks and bonds. In 2002, Bourgeon Capital expanded its leadership team when Michael Keohane joined SAC Capital to co-manage the firm’s long/short hedge fund. With a portfolio value of nearly $535.55 million by the end of December 2024, Bourgeon Capital is known for providing personalized investment strategies designed to manage risk while achieving long-term growth.

John Zaro, the firm’s founder and managing partner, has an extensive background in investment management spanning several decades. In addition to his Bachelor of Arts degree in Political Science and Economics from Stanford University, he is a Chartered Financial Analyst (CFA) and an active member of the New York Society of Security Analysts.

John Zaro’s career in finance has been marked by influential roles at major financial institutions; it began at Morgan Stanley Smith Barney LLC where he held the role of vice president from 1984 to 1991. Later, he served as a portfolio manager and vice president at J.P. Morgan Investment Management from 1991 to 1997 during which he managed substantial assets for clients. Just before establishing Bourgeon Capital, Zaro held the positions of Chief Investment Officer and Managing Director at Warburg Pincus Asset Management from 1997 to 1999. During his time there, he played a key role in shaping investment strategies for high-net-worth clients. With expertise in portfolio and alpha target management, Zaro was instrumental in refining investment processes for private clients and high-net-worth individuals.

With over two decades of experience, Zaro founded Bourgeon Capital with the vision of offering a more client-centric approach to wealth management. His goal has always been to foster strong, long-term relationships with clients through honest and strategic financial guidance. Bourgeon Capital continues to uphold this commitment, ensuring that each client’s investment strategy is tailored to their unique financial needs and aspirations.

In recognition of his accomplishments in wealth management, Morgan Stanley announced in 2022 that Zaro, then serving as a First Vice President and Financial Advisor at the firm’s Wealth Management office, was named to Forbes Magazine’s prestigious list of Top Next-Gen Wealth Advisors. This ranking evaluates candidates based on various qualitative and quantitative factors, including industry experience, leadership experience, assets under management, revenue trends, and compliance records. The selection process also incorporates insights gained from extensive interviews.

Bourgeon Capital’s investment philosophy is centered on achieving consistent, long-term returns while minimizing volatility. The firm prioritizes risk management by employing strategies that aim to reduce extreme market fluctuations. A key approach under Zaro’s leadership has been investing excess cash in the bond market to capitalize on higher interest rates. This strategy reflects the firm's commitment to balancing risk and reward while ensuring that clients’ investments align with their financial goals.

Our Methodology

The stocks discussed below were picked from Bourgeon Capital’s Q4 2024 13F filings. They are compiled in the ascending order of Bourgeon Capital’s stake in them as of December 31, 2024. In order to assist readers with more context, we have included the hedge fund sentiment regarding each stock using data from over 1000 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

A shot of a commercial plane with a blur of color in the background, representing the production of auxiliary power units in the Safety and Productivity Solutions segment.

Honeywell International Inc. (NASDAQ:HON)

Number of Hedge Fund Holders as of Q4: 67

Bourgeon Capital’s Equity Stake: $17.36 Million 

Honeywell International Inc. (NASDAQ:HON), headquartered in Charlotte, North Carolina, is a multinational conglomerate specializing in aerospace, building automation, industrial automation, and energy and sustainability solutions. Established through the merger of Honeywell Inc. and AlliedSignal in 1999, the corporation retained the Honeywell name due to its strong brand recognition.

With its diversified business operations, strong market position, and continued focus on innovation, Honeywell International Inc. (NASDAQ:HON) remains a compelling investment choice. Its involvement in high-growth industries such as aerospace and automation, along with its commitment to sustainability solutions, positions it as a top stock for long-term investors seeking stability and growth potential. The company generates revenue from four major divisions: aerospace technologies, industrial automation, building automation, and energy and sustainable solutions.

Honeywell International Inc. (NASDAQ:HON) achieved a 7% year-over-year increase in fourth-quarter sales, reaching $10.09 billion. Despite ongoing macroeconomic challenges, earnings per share rose 3% to $1.96. Operating income saw a 10% increase, with the operating margin improving by 50 basis points to 17.3%. However, segment profit declined 8% to $2.1 billion, and the segment margin contracted by 350 basis points to 20.9%, or by 70 basis points to 23.7% when excluding the impact of the Bombardier agreement. Operating cash flow dropped 23% to $2.3 billion, while free cash flow declined 27% to $1.9 billion. Net income grew 3.4% year over year, reaching $1.29 billion.

With steady revenue growth, improving profitability, and strong earnings performance despite economic headwinds, Honeywell International Inc. (NASDAQ:HON) remains a solid investment. Its ability to maintain resilience and expand operating margins highlights its long-term potential, making it a top stock to consider for investors seeking stability and growth.

Overall HON ranks 4th on our list of the stocks to buy according to Bourgeon Capital. While we acknowledge the potential for HON as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than HON but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

 

READ NEXT: 20 Best AI Stock To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

 

Disclosure: None. This article is originally published at Insider Monkey.