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%. In the interest of time, we are keeping this brief and will be out with a full analysis of the quarter later today. However, we are stepping into pick up shares on today’s earnings-related decline as we believe the company to be effectively executing on everything in their 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, Aerospace, came up short versus analysts’ estimates. That said, 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. HON 1Y mountain Honeywell 1 year Neither of these areas of strength (margins/cash flow) was enough to offset the sales or overall segment profit misses, however, they do speak to management effectively executing on the variables in their control by 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 -(back half weighted) – evidenced by the over 30% orders growth seen in safety and productivity solutions during the quarter. We want to build up our position 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.
