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Shortly after the opening bell, we’re buying 30 shares of Honeywell (HON) at roughly $196.50 each. Following Thursday’s trade, Jim Cramer’s Charitable Trust will own 560 shares of HON, increasing its weighting to 3.70% from 3.51%. We are picking up shares of this industrial name after they fell following its earnings results Thursday before the bell. We believe the company is effectively executing on everything in its control and that management has opted to provide a conservative — meaning beatable — full-year guide. Sales were disappointing across the board as even the star of the show, its aerospace business, came up short versus analysts’ estimates. But what keeps us interested is the largely better-than-expected segment margin performance (with the exception of building technologies). Additionally, cash flow generation came in solidly above expectations. Stay tuned for our full earnings analysis later today. HON 1Y mountain Honeywell 1 year These two areas of strength (margins and cash flow) were not enough to offset the sales or overall segment profit misses. However, they do show management succeeding in making the company leaner and positioning the company to win as the macroeconomic backdrop improves. Moreover, management noted that the long-cycle markets remain robust and expected the short-cycle market to recover as we progress through 2024, evidenced by the orders growth of more than 30% in safety and productivity solutions during the quarter. We want to build up our position in HON ahead of this recovery. (Jim Cramer’s Charitable Trust is long HON. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
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