What Makes Honeywell (HON) a Good Investment?

Group 1 - Madison Investments reported a 2.65% return for the S&P 500 in Q4 2025, leading to a full-year return of 17.9% for 2025, with the index achieving over 21% annual growth over the last three years [1] - The Madison Large Cap Fund (Class I) outperformed the S&P 500 with a return of 3.43% in Q4 2025, indicating effective fund management [1] - Market leadership was characterized by High Beta and Momentum factors, with improvements in previously lagging sectors such as Healthcare, Financials, and Consumer Discretionary [1] Group 2 - Honeywell International Inc. (NASDAQ:HON) stock closed at $243.61 on February 24, 2026, with a one-month return of 12.45% and a 52-week gain of 22.35%, reflecting strong performance [2] - Honeywell has a market capitalization of approximately $164.16 billion, indicating its significant size in the market [2] - The Madison Large Cap Fund initiated a position in Honeywell, viewing it as a high-quality industrial conglomerate undergoing a portfolio transformation, which includes the sale and spin-off of various assets in 2025 [3] Group 3 - Honeywell is not among the 30 most popular stocks among hedge funds, with 79 hedge fund portfolios holding its stock at the end of Q4 2025, an increase from 76 in the previous quarter [5] - While Honeywell is recognized for its investment potential, the company is compared to certain AI stocks that are perceived to offer greater upside potential and lower downside risk [5]