Cramer's Morning Take: Honeywell 2/1/24

Jim Cramer (0:02)

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

Let's get right to it, because it's a very, very busy day. Yesterday, the Fed did exactly what we told you we were gonna do, which is nothing. We have been concerned, as you know, that the Super Six were ahead of themselves, and that's certainly what we saw. Beware that tonight, Apple will guide down second quarter, it will be a disappointment. Yield tenure is back under 3.9, and we are doing some buying.

Jeff Marks (0:34)

Yeah, we're doing some buying. There was a lot of earnings this morning in the portfolio. There's one pulling back, we see it as an opportunity. That one's Honeywell, that one, we just start with Honeywell. Quarter was just okay, $0.260 towards the high end of their guidance range. A big expectation to buy a penny. Organic sells a little bit lower than expected, but they made up for it on margins. Aerospace continues to be very strong, up 15%, that's 11 straight quarters of strong growth.

Some of the other businesses, more mix, they are dealing with some challenges, continued challenges, I would say.

Home building technology is down 1%, that's where they made that nice acquisition. So that's not in the numbers yet, so that should start to improve this year. Performance material technology is up 4%, nice return to growth there. But safety productivity solutions still drag down 24%. Now, the key thing here, though, is that warehouse, automation, still troughing, and then just by and large, productivity solutions and services, business, their orders there were up 30%, so we're nearing the end of this data cycle.

Jim Cramer (1:37)

Right, and this man's a builder, he's not a cost cutter. I did not mention Honeywell, it took pains not to mention Honeywell and Squawk on the Street, to give you, particularly new people, because we bought some in the 180s, a chance to buy Honeywell, and I want you to do that. I think that this is a major opportunity.

When I say major, I mean, we bought some, a lot of people might have thought, well, wait a second, why did they do that? And the answer is, because it should not be down. It's a mistake. It should be down, but not this amount.

And because we have a new CEO, you're getting a reset opportunity to buy.

Jeff Marks (2:10)

Yeah, I think it's down. They guided earnings 980 to 1010 for the year, up seven to 10%. Consensus was 996

But they're very conservative when they start the year.

Jim Cramer (2:20)

Absolutely, and that's what that's different.

Jeff Marks (2:21)

They tend to be in raise as we move along, and as these short cycle businesses in the productivity solutions, once they start to bottom, return to growth, you'll see sales start to pick up again, margins improve too. By the way, the total company backlogged up 8% year over year, which is pretty good. So they're building a nice backlog of business, and it's a matter of time.

Jim Cramer (2:46)

And I want you to finish our broadcast, but then I do want you to go buy Honeywell.

Start your day with my outlook on the daily market every morning at 10:20 a.m. Visit cnbc.com/morningtake to access all the benefits of being a CNBC Investing Club member.

SPEAKER_3 (3:05)

All opinions expressed by Jim Cramer on this podcast and in connection with the CNBC Investing Club are solely Cramer's opinions and do not reflect the opinions of CNBC, NBC Universal or their parent company or affiliates, and may have been previously disseminated by Cramer on television, radio, internet or another medium.

No specific outcome or profit is guaranteed in connection with your reliance upon or other use of the content from Cramer. The opinions offered in connection with this podcast and the CNBC Investing Club are not an attempt to induce any particular trading behavior, investment or strategy. You should be aware of the risk of loss and following any strategy or investment discussed in the content from Cramer. To view the full CNBC Investing Club disclaimer, please visit cnbc.com forward slash investing club disclaimer.