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

Published Wed, Apr 10 20243:01 PM EDTUpdated Wed, Apr 10 20243:50 PM EDT

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. The stock has been a disappointment over the past couple of years even though its aerospace division has shined and margin expansion has been solid. What's held the company back is sluggish growth in other parts of the business, like safety and productivity solutions and building technologies. While 2024 may not be the year when each of those struggling businesses turns and all units start to fire on all cylinders, the stock could go higher if management follows through on its plan to reshape the portfolio. Honeywell has optionality. 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. We anticipate management will be aggressive this year reshaping its portfolio, and we are buyers ahead of these key moves. (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.