Why Honeywell Stock Topped the Market on Tuesday
Key Points
The industrial company is carving out its quantum computing unit into a separate company.
This will make that business, Quantinuum, one of the few pure-play quantum stocks on the market.
- 10 stocks we like better than Honeywell International ›
The pricing of a Honeywell (NASDAQ: HON) carve-out juiced the stock of the storied industrial company on Tuesday. After the company provided crucial financial details for the soon-to-be independent Quantinuum that morning, investors signaled their approval by collectively trading the stock up by 1.7%. That was good enough to beat the S&P 500 index's 0.6% rise on the day.
A cutting-edge IPO
Honeywell has priced its planned initial public offering (IPO) for Quantinuum (which, as the name implies, is a quantum computing business) at $45 to $50 per share. It's aiming to sell roughly 21.05 million shares, which would bring in as much as $1.05 billion in gross proceeds.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Image source: Getty Images.
The announcement came less than three weeks after Honeywell filed an S-1, a foundational IPO registration document, for Quantinuum. In it, the company revealed that JPMorgan Chase unit J.P. Morgan and Morgan Stanley are leading the syndicate that will take the unit public.
Honeywell, which will hold a stake in Quantinuum of slightly over 49%, certainly has timing on its side. Investors are eager to own shares of quantum companies -- not only are they considered by many to be the future of powerful computing, but they've also been the target of direct federal financial assistance and involvement exceeding $2 billion.
Mr. Market is hungry
Given that level of excitement, it might surprise some to learn that there aren't many quantum stocks available for investment now. The arrival of Quantinuum will be impactful on that basis alone, and the involvement of the well-known Honeywell should boost confidence in the company's viability.
I wouldn't buy Honeywell simply because of its relationship to Quantinuum, but I think the industrial giant is making a smart move by retaining that large ownership stake.
Should you buy stock in Honeywell International right now?
Before you buy stock in Honeywell International, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Honeywell International wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $477,813!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,320,088!*
Now, it’s worth noting Stock Advisor’s total average return is 986% — a market-crushing outperformance compared to 208% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of May 26, 2026.
JPMorgan Chase is an advertising partner of Motley Fool Money. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Honeywell International and JPMorgan Chase. The Motley Fool has a disclosure policy.
Recommended Articles
