With a favorable pricing environment and a rebound in demand for its products, we expect Honeywell’s operating margins to expand further after a 200 bps rise between 2018 and 2021. The S&P500 has now entered bear market territory with rising concerns of slowing economic growth given the high inflation, Fed action, and supply chain disruptions. That said, we estimate Honeywell’s valuation to be $232 per share, reflecting a 29% upside from its current market price of $180, implying that investors may be better off using the recent dip to enter HON stock for gains in the long run.