Cramer's Morning Take: Honeywell 10/23/25

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Jim Cramer (0:47)

I'm Jim Cramer and you're about to hear a sample taken directly from today's CNBC Investing Club morning meeting.

SPEAKER_1 (0:55)

Well, you know, Honeywell has a quantum unit, not really getting credit for it, but that's part of like the larger picture. But we are seeing a good move today after a strong beat in the quarter with organic revenue, revenue, earnings, and margins, either meeting the high end or exceeding the high end of their guide. They raised the full year outlook and you really got to drill this down because they backed out, they removed Solstice, the upcoming spinoff of the Specialty Materials business, out of the outlook and it was still a raise, a pretty nice raise after that. You had orders up 22 percent year over year with growth in all four segments. I thought that was really impressive. A new record backlog, 39.1 billion up 11 percent excluding some acquisitions. You had aerospace up 12 percent organic. Industrial automation actually returned a growth up one percent. But they didn't say that... It's not the inflection, they're guiding Q4 down, but still encouraging to see.

Jim Cramer (1:57)

Well, what I think we're most encouraged about is is we've been saying as we get closer to the spin-off, you're gonna start to see the values. Now, I actually think that that chemical business has a lot of value. Now, it does have uranium, but you know, I'm not keen on uranium.

SPEAKER_1 (2:10)

Yeah, it's a feedstock in the enrichment process.

Jim Cramer (2:12)

But I think that as we get closer and closer, first with solstice, you realize that there's tremendous value here and the stock had been kept down by the difficulty of understanding what it really did.

SPEAKER_1 (2:23)

Yeah, you're shedding, you know, solstice, it's gonna be a lower multiple business, especially compared to aerospace.

Jim Cramer (2:29)

A high cash flow.

SPEAKER_1 (2:30)

Yeah, good cash flow. We've seen some coverage on it. I saw one buy, one hold so far. $70 price target is the highest.

Jim Cramer (2:37)

And that is the next week business.

SPEAKER_1 (2:38)

Yeah, this spins next week.

Jim Cramer (2:40)

And what is your inclination to keeping it or selling it?

SPEAKER_1 (2:44)

I think we can just hold. I think we can just hold.

Jim Cramer (2:48)

There's not any good stocks in that sector.

SPEAKER_1 (2:50)

It's not like DuPont where the thesis is immediate unlocking of value. The real value from this breakup is having all these new companies having more of a focused approach to their business. They can prioritize R&D the right way.

Jim Cramer (3:10)

We saw it with RTX. I mean, Otis was buried. It wasn't doing well. Otis gets its own stock. Boom. Carrier kind of weighed down right now by an acquisition, I think they may, but Carrier is a terrific company. And these companies are not tied down. I think this is going to be a very, very big win.

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