We're dipping our toes into this down market with a buy of an industrial stock

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Honeywell International Inc News

Jim Cramer,Investment Strategy,Markets

We anticipate management will be aggressive this year reshaping its portfolio, and we are buyers ahead of these key moves.

We are buying 25 shares of Honeywell at roughly $194.57. Following the trade, Jim Cramer's Charitable Trust will own 585 shares of HON, increasing its weighting to 3.58% from 3.44%. We are dipping our toes in Wednesday's pullback to add to our position in this aerospace-focused industrial. Honeywell stock is trading only a couple of dollars off its 2024 lows, and we think this weakness is a good opportunity to buy more shares. To be fair, it has not been easy to own Honeywell.

Management has previously said it plans to divest about 10% of revenues that are not aligned with its new structure focused on mega-trends around automation, aviation, and the energy transition. Getting rid of businesses that no longer fit and focusing on these multiyear growth trends is what is necessary to finally get the market excited about Honeywell again. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade.

 

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