3 "Top Picks" From Wall Street That Are Magnificent Buys Right Now

Group 1: Honeywell International - Honeywell has been added to UBS analyst Amit Mehrotra's list of "top picks" alongside Johnson Controls and 3M, indicating strong potential for outperformance [1] - The company raised the midpoint of its full-year guidance following excellent first-quarter results, with an organic sales growth outlook of 2% to 5% [2][4] - Honeywell's aerospace business is benefiting from increased aircraft production and growth in flight departures, with notable double-digit growth in Building Solutions [3] - Long-term potential exists from the planned breakup into three divisions, allowing for a more focused investment proposition and capital raising opportunities [6][7] Group 2: Johnson Controls - Johnson Controls reported a 7% organic sales growth in its fiscal second-quarter 2025, raising its full-year earnings guidance to $3.60 [9] - The company achieved a 5% order growth, increasing its backlog to $14 billion, driven by digital technology deployment [10] - Long-term growth catalysts include the adoption of the OpenBlue suite, which optimizes building efficiency and supports net-zero emissions goals [12] - The company's HVAC systems present growth opportunities in data centers, aligning with the AI/data center spending boom [13] Group 3: 3M - 3M's new CEO, Bill Brown, is implementing improvements after a period of underperformance, particularly in addressing legal issues and restructuring [14][15] - The company is tracking toward the low end of its guidance for full-year organic sales growth of 2% to 3%, but operational improvements have increased its operating margin to 23.5% [16] - If the tariff environment improves, 3M could benefit from enhanced earnings due to improved end markets and reduced cost headwinds [17]