This Stock Thrives on High Fuel Costs

 | Apr 23, 2012 | 2:15 PM EDT
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Some companies were built to take advantage of higher fuel costs. Not many, but some. Because most simply never believed they could break out of control after being tame for so, so many years.

Honeywell (HON) is one of those companies. When Dave Cote took the helm 10 years ago, Honeywell was a pastiche of different companies that didn't really live together.

Now almost every division has something to do with combatting the costs of rising fuel. After the celebration of Earth Day, you can only marvel at how much Honeywell has to offer on the topic.

First, it is helping to make fuel-efficient plans by developing a cockpit system that alerts planes how to avoid flight patterns that have historically used more fuel.

Second, its turbo engines for cars have boosted miles per gallon on a car by 35% to 40%.

Third, its thermostat controls can dramatically cut the cost of heating and cooling buildings, which accounts for up to 40% of our fuel use.

Fourth, its chemicals help get far more gasoline out of crude, particularly dirty crude, and have been an immense help and are vital to keep refiners in business.

These are major reasons why companies turn to Honeywell to save energy. They are major reasons why it can be bought into any European-related weakness. It's a go-to name in a tough environment.


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