By Ion Jauregui – Analyst at ActivTrades
Honeywell International Inc. (NASDAQ: HON) has unveiled a technology that could redefine the use of agricultural and forestry waste. The U.S.-based company has developed a process capable of converting these residues into biocrude, a low-emission marine fuel that can be used in heavy fuel oil engines without structural modifications.
The breakthrough was announced by Ken West, President of Honeywell Energy and Sustainability Solutions, who emphasized that this biofuel “can be used in existing vessels, has a global reach, and represents a viable solution for countries with limited access to fossil or renewable fuels.”
However, price remains the main obstacle. Each ton of this biofuel is estimated to cost between $1,100 and $1,300, more than double the price of traditional heavy fuel oil. In addition, the intensive use of biomass without sustainable management could put pressure on ecosystems and increase the risk of deforestation.
Despite these challenges, the development reinforces Honeywell’s position as a leader in energy sector innovation. If the company manages to scale production and optimize costs, this technology could become a high-potential new revenue line in the transition toward cleaner energy.
Fundamental Analysis: Transformation
Honeywell is undergoing a period of strategic transformation. The company has announced a division into three independent units — aerospace, automation, and advanced materials — aimed at unlocking value and improving operational efficiency.
In the last quarter, Honeywell reported revenues exceeding $10.4 billion, surpassing analysts’ estimates. Operating margins remain strong, supporting the company’s ability to invest in innovation and sustainability projects.
However, the earnings forecast for 2025, between $10.10 and $10.50 per share, has been interpreted as conservative by the market. This cautious guidance, combined with costs associated with the restructuring, has tempered short-term expectations.
In the medium term, Honeywell is well-positioned in three key trends: industrial automation, energy transition, and digitalization. These areas are expected to continue driving demand for its technological solutions, particularly in environments focused on energy efficiency and emissions control.
Technical Analysis – Ticker AT (HON.US)
From a technical perspective, Honeywell shares closed yesterday at $212.89, within a long-term lateral range. In the short term, the stock has shown a recovery rally, approaching the mid-range zone that coincides with the point of control (POC) around $212. Last week, the price reached a high of $215.11, which currently acts as an immediate resistance, slowing further upward momentum.
Moving average signals indicate a clear tendency toward lateralization, while the RSI sits in a neutral zone after having been in strong oversold territory last week. The MACD, on the other hand, shows neutral values with a slight upward bias and a positive histogram, reflecting moderate momentum.
Key resistance levels are at $222.48, $229.28, and the July all-time high of $240.47, corresponding to a previous head-and-shoulders pattern. Support levels are at $200.61; if this fails, the next supports are $190.15 and the April low of $177.52.
The ActivTrades US Market Pulse currently indicates risk neutrality, although there is a tendency toward asset liquidation following a highly risk-off October, signaling a balanced market despite results pushing indexes upward.
From a perspective standpoint, the objective would be to recover current resistance zones to reach the upper part of the long-term range, thereby consolidating stability within the stock’s lateral structure.
Outlook: Green Economy
Honeywell’s commitment to developing sustainable fuels reinforces its positioning in the green economy, a key segment in the global energy agenda. If the company can reduce costs and expand production, this technology could become an additional growth engine within its diversified industrial structure.
On the market side, the stock maintains a constructive technical profile, although investors remain cautious regarding the effects of the upcoming corporate restructuring. Overall, Honeywell combines innovation, operational strength, and direct exposure to the main industrial transformation trends of the 21st century.
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