Piotroski’s Best and Worst Large Cap Stocks

By Joel Stonington - 2011-12-06T01:37:02Z

Photograph by Jason Alden/Bloomberg

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Piotroski's Best: Honeywell

Business: Aerospace products and services/energy products

Piotroski Score: 9

Honeywell's (HON) operating cash flow of $4.2 billion in 2010 exceeded net income of $2.02 billion -- favorable according to the Piotroski model. Gross margin rose from 22.31 percent in 2009 to 23.53 percent in 2010.

Outlook for the Company:

Bull Case: Improved airline traffic could lead to increased orders as aircrafts are flown more often, according to Bloomberg Industries analysis.

Bear Case: Bloomberg Industries says that defense budgets, the largest discretionary spending account, are likely to be cut as governments manage their debt burdens.