Back to top

Analyst Blog

Diversified technology company Honeywell International Inc. (HON - Analyst Report) recently augmented its gas detection portfolio with the closure of the acquisition of RAE Systems Inc., a global manufacturer of fixed and portable gas and radiation detection systems, for $340 million. Post-acquisition, RAE will form an integral part of Honeywell Analytics, which is a division of Honeywell Life Safety (HLS) within Honeywell Automation and Control Solutions (ACS).

Headquartered in San Jose, CA, RAE offers rapidly deployable intelligent gas and radiation detection systems to facilitate real-time safety and security threat detection for various U.S. and non-U.S. government agencies as well as several city and state entities across the country. Its product portfolio includes a full line of wireless enabled solutions such as personal, hand-held, transportable, and fixed instruments for a wide range of personal and plant safety and regulation compliance applications.

With the merger, RAE aims to leverage Honeywell’s expertise and financial capabilities to strengthen its continued efforts to develop and manufacture leading chemical, gas and radiation detection solutions and services for worldwide customers. The strategic decision further reflects its sustained focus on industrial and responder safety and is expected to fuel growth by redirecting capital to expand its research and development initiatives.

On the other hand, the acquisition has enabled Honeywell to offer a compelling value proposition to its customers with a comprehensive product portfolio, addressing all possible gas detection requirements in the industry. These include industrial fire and gas systems, portable gas detection, flame and centralized gas monitoring systems and systems used in commercial building environments. The transaction, therefore, is a win-win deal for both the participating companies.

Based in Morris Township, NJ, Honeywell manufactures a wide range of aerospace products and services, including control, sensing and security technologies for buildings, homes and industry; turbochargers; automotive products; specialty chemicals; electronic and advanced materials; process technology for refining and petrochemicals; and energy efficient products and solutions for homes and business.

Honeywell operates its business through four operating segments – Aerospace, Automation and Control Solutions, Performance Materials and Technologies, and Transportation Systems. Honeywell’s diversified business portfolio mitigates operating risks and has the potential to earn consistent above-average returns.

Honeywell currently has a Zacks Rank #3 (Hold). Other companies in the industry worth mentioning include ITT Corporation (ITT - Analyst Report) and Compass Diversified Holdings (CODI - Snapshot Report), both carrying a Zacks Rank #2 (Buy), and China Merchants Holdings (International) Company Limited (CMHHY), which retains a Zacks Rank #1 (Strong Buy).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
CENTURY ALU… CENX 22.53 +4.50%
ERBA DIAGNO… ERB 2.91 +4.30%
PLANAR SYST… PLNR 4.31 +3.86%
MALLINCKROD… MNK 72.17 +3.83%
GTT COMMUNI… GTT 12.06 +3.52%