We're adding to this industrial giant, as the CEO looks to unlock value

Published Thu, Sep 28 20233:01 PM EDTUpdated Thu, Sep 28 20233:30 PM EDT

We are buying 25 shares of Honeywell International (HON), at roughly $186.97 apiece. Following Thursday's trade, Jim Cramer's Charitable Trust will own 530 shares of HON, increasing its weighting in the portfolio to 3.56% from 3.40%. After a busy day of trades , we're squeezing in one more buy on Thursday to put a little extra money to work, as the market climbs back from oversold territory ahead of an expected seasonal improvement. As part of a recent slate of diversified purchases, we're adding to our position in industrial giant Honeywell on the assumption that the new CEO, Vimal Kapur, is in the process of scrutinizing the company to unlock value . When Kapur spoke at the Morgan Stanley Laguna conference last week, he outlined three immediate priorities for the portfolio: rejuvenation, simplification and accelerated growth. We understand those comments to mean that everything is on the table right now at Honeywell. The company could be exploring a transformative deal to accelerate growth, or potentially looking to divest parts of its business — to shrink, so it can grow. The breakup prospect makes the most sense, as the recent splits of industrials General Electric (GE) and RTX Corp. (RTX) have largely been well-received by the market. Either way, we see a new CEO who is committed to finding ways to create value for shareholders. And with the stock down 12% year-to-date, trailing many of its multi-industry peers, there's plenty of room for catch-up here. (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.

An aircraft engine is being tested at Honeywell Aerospace in Phoenix.

Alwyn Scott | Reuters