We buy 25 shares of Honeywell at around $194.57. Following the transaction, Jim Cramer’s Charitable Trust will own 585 shares of HON, increasing its weighting from 3.44% to 3.58%. We are preparing for Wednesday’s pullback to strengthen our position in this aerospace-focused industry sector. Honeywell stock is trading just a few dollars off its 2024 low, and we think this weakness is a good opportunity to buy more shares. To be honest, owning Honeywell hasn’t been easy. The stock has been disappointing over the past two years, although its aerospace division has shined and margin expansion has been solid. What’s holding the company back is slow growth in other areas of the business, like security and productivity solutions and building technologies. While 2024 may not be the year when every one of these struggling companies turns around and all units start operating at full capacity, the stock could rise if management follows through on its portfolio reshaping plan. Honeywell has an option. Management previously announced plans to divest around 10% of revenue that does not fit its new structure focused on megatrends around automation, aviation and the energy transition. Getting rid of companies that no longer fit and focusing on these multi-year growth trends is what’s needed to finally get the market excited about Honeywell again. We expect management to be aggressive this year in reshaping its portfolio, and we are buyers ahead of these key moves. (Jim Cramer’s Charitable Trust is long HON. See here for a complete list of stocks.) As a subscriber to CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after a trade alert is sent before buying or selling a stock in his charity’s portfolio. If Jim talked about a stock on CNBC TV, he waits 72 hours after the trade alert is issued before executing the trade. THE ABOVE INVESTMENT CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, AS WELL AS OUR DISCLAIMER. NO OBLIGATION OR FIDUCIARY OBLIGATION EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB. NO SPECIFIC RESULTS OR PROFITS ARE GUARANTEED.
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