Quantum computing stocks are still popular with investors, judging by the price action to start this week. Rigetti Computing (RGTI) soared 42% in today’s trading, IonQ (IONQ) broke out to a gain of more than 16%, D-Wave Quantum (QBTS) surged 19%, and the aptly named Quantum Computing (QUBT) advanced 16.7%, bringing its 6-month gain to about 1,609%.
Along with a bullish broad-market backdrop, news of a massive investment from a large-cap quantum computing player helped to drive Tuesday’s positive momentum. Quantinuum, which is majority owned by Honeywell International (HON), announced today that it plans to open a new R&D facility in New Mexico with a focus on photonics technology.
HON stock closed up more than 1% on the day, but the industrial conglomerate is a long-term underperformer - which is exactly what drew the attention of activist investor Elliott Management, who is pushing for a break-up of Honeywell and its many parts. Investors can expect an update on the results of management’s strategic review when Honeywell reports fourth-quarter earnings on Thursday, Feb. 6.
That adds an extra element of uncertainty around HON at current levels, compared to its usual status as a fairly staid dividend stock. HON offers a dividend yield of 2.03%, which is attractive for income-focused investors. Honeywell has shown a positive five-year earnings growth rate of 14.36%, and expectations for continued bottom-line growth should support future dividend payments.
Analysts have an average rating of “Moderate Buy” for Honeywell stock, and the average price target of $245.95 suggests additional upside potential of about 9.3% from Tuesday’s close.
Overall, while Honeywell provides a decent dividend yield with the added bonus of exposure to the quantum computing industry, potential investors may want to wait for more clarity on the conglomerate’s strategic review before diving in.
This article was generated with the support of AI and reviewed by an editor. On the date of publication, the editor did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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