RBC’s Bull Market Picks: Meta and Honeywell Aerospace – What’s Driving the Upside?
(SeaPRwire) – By: Christian Pierce
RBC Capital’s recent picks of Meta Platforms and Honeywell Aerospace as stocks with potential for outperformance in the second half of 2026 have sent ripples through the investment world. This move comes at a time when RBC strategist Lori Calvasina has lifted the S&P 500 price target to 8,150, indicating a bullish sentiment on the overall market.
Meta’s Q1 2026 performance was nothing short of spectacular. With a revenue of $56.3 billion, a 33% year-over-year increase that exceeded expectations by over $755 million, and earnings per share of $10.44, up 62% from the same period last year, Meta is clearly on a growth trajectory. Digital advertising, which accounts for nearly 98% of its revenue, saw ad impressions across its apps rise 19% year-over-year and the average price per ad climb 12%. This growth is not only impressive but also shows the resilience and dominance of Meta in the digital advertising space.
What’s even more interesting is Meta’s massive investment in AI. Projecting a capital expenditure of $135 billion in 2026, almost double its 2025 spending, Meta is betting big on AI infrastructure, data centers, and its own AI processor chips. RBC analyst Brad Erickson believes that Meta’s unparalleled behavioral data, gathered from over 40% of the world’s population, positions it well to move beyond advertising. He envisions the company evolving into an “automated incubator” for new businesses. With an $810 price target on Meta, there’s significant potential for upside, especially considering the stock currently trades around $582.90. Wall Street’s broader consensus of a Strong Buy, based on 32 Buys and 5 Holds from 37 analysts, with an average price target of $818.23, further validates Meta’s growth prospects.
On the other hand, Honeywell Aerospace’s emergence as an independent publicly traded company on June 29 brings a new dynamic to the aerospace industry. Headquartered in Phoenix and serving commercial aviation, defense, and space customers, Honeywell Aerospace has a strong foothold. It supplies avionics found in 90% of global aircraft, has delivered over 100,000 auxiliary power units since 1959, and its parts are used in 80% of satellites. RBC analyst Ken Herbert, ranked in the top 1% of Wall Street analysts, points out the company’s advantageous position on key contracts, such as sole-source positions on the Boeing 737 and Airbus A320 auxiliary power units.
Herbert rates the stock Outperform with a $300 price target. Given that the shares currently trade at $247.15, this implies an upside of around 21%. The broader analyst consensus of a Moderate Buy, with 2 Buys and 5 Holds from seven analysts and an average price target of $263.13, suggests that there’s room for growth. RBC had previously raised its price target on Honeywell International ahead of the spin-off, citing expected margin expansion and AI-related updates for its Forge industrial platform.
Both Meta and Honeywell Aerospace reflect RBC’s broader view that equities are on solid ground as we head into the rest of 2026. Meta’s focus on AI and its strong advertising business, combined with Honeywell Aerospace’s established presence in the aerospace sector, make them attractive investment options. However, investors should also consider the potential risks. In Meta’s case, regulatory challenges in the digital advertising space and the success of its AI initiatives remain uncertainties. For Honeywell Aerospace, geopolitical tensions that could affect defense spending and the highly competitive nature of the aerospace industry are factors to watch.
In conclusion, while these stocks offer potential for growth, a thorough analysis of the market, industry trends, and company-specific factors is crucial for making informed investment decisions.
Author bio: Christian Pierce, a chief financial columnist and markets commentator.