Club meeting recap: Jim Cramer says industrial giant Honeywell is a buy

Published Wed, Apr 12 202311:29 AM EDT

Kevin Stankiewicz @in/kevin-stankiewicz-b5593466 @kevin_stank

Every weekday the CNBC Investing Club with Jim Cramer holds a "Morning Meeting" livestream at 10:20 a.m. ET. Here's a recap of Wednesday's key moments. Stocks fall Buy Honeywell Stick with Meta 1. Stocks fall, despite softer inflation Stocks gave up early gains Wednesday after having initially climbed on fresh data showing inflation cooled in March . The U.S. consumer price index increased 0.1% month-over-month and 5% on an annual basis, the Labor Department reported. That compared with Dow Jones estimates of 0.2% and 5.1%, respectively. However, Jim Cramer said Wednesday he remains concerned shelter costs rose 8.2% year-over-year — a sign that housing inflation remains sticky. He said he's worried hawkish Federal Reserve members could point to that number as reason to maintain aggressive interest rate hikes. The S & P 500 was down 0.22% in midmorning trading, while the Nasdaq Composite fell 0.54%. 2. Buy Honeywell, watch Emerson Honeywell International (HON) is a buy at current levels. The stock — which eked out a 2.8% gain in 2022 to solidly outperform the market — has fallen around 10% so far in 2023. But the industrial conglomerate's underperformance to start the year has created an attractive situation for investors, Jim argued Wednesday. His comments came after Deutsche Bank named Honeywell a "short-term investment idea" in a note to clients. Shares of Honeywell were trading up 0.53% Wednesday morning, at $193.21 apiece. Meanwhile, another big industrial in the portfolio, Emerson Electric (EMR), fell nearly 2% after it officially announced a deal to acquire National Instruments (NATI) for $60 per share — a price Jim said was too high. Stay tuned for more Club analysis on the transaction. 3. Stick with Meta Meta Platforms (META) is still a terrific stock to own, Jim said Wednesday. While shares of the Instagram parent were roughly flat Wednesday morning, they remain up a robust 19% over the past month. Meta has deftly been using artificial intelligence to improve ad targeting on its platforms. "That's another reason to own the stock," Jim added. (Jim Cramer's Charitable Trust is long HON, EMR and META. 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.