Cramer's Morning Take: Honeywell 2/19/25

SPEAKER_1 (0:00)

This is a message from sponsor Intuit TurboTax. Taxes was getting frustrated by your forms. Now Taxes is uploading your forms with a snap, and a TurboTax expert will do your taxes for you. One who's backed by the latest tech, which cross-checks millions of data points for absolute accuracy. All of which makes it easy for you to get the most money back guaranteed. Get an expert now on turbotax.com, only available with TurboTax Live full service. See guarantee details at turbotax.com/guarantees.

SPEAKER_2 (0:31)

Are you still quoting 30-year-old movies? Have you said cool beans in the past 90 days? Do you think Discover isn't widely accepted? If this sounds like you, you're stuck in the past. Discover is accepted at 99% of places that take credit cards nationwide. And every time you make a purchase with your card, you automatically earn cash back. Welcome to the now. It pays to Discover. Learn more at discover.com/creditcard, based on the February 2024 Nelson Report.

Jim Cramer (1:01)

Hey, it's Cramer, and this is my morning take on the market from today's CNBC Investing Club morning meeting. Now today, Jeff, we are not following through with the last five minutes of yesterday's trading.

Jeff Marks (1:11)

Yes. Just giving it back. That late day pop that did send the S&P to a new all-time high.

Jim Cramer (1:18)

Right. I mean, let's take advantage of that. Let's talk about Texas Roadhouse, up five yesterday, down two today. That's kind of where we are. I find that there are some stocks that are doing well, but they tend to be in very niche areas today. Honeywell, which we just bought.

Jeff Marks (1:36)

Yeah, we added to our position this morning. They spoke also at a conference, Barclays Conference down in Miami this morning. Still working its way, working my way through that. But I think the reason why we are buyers again, after doing a lot of selling from late November, to early January, is that we were concerned about earnings guidance, the outlook, and now we've seen the outlook, and we think they've set a conservative level where they can beat through the year.

Jim Cramer (2:04)

Finally, it's like what happened with GE Healthcare. They finally set the right level. I would point out that the automation division must be fixed, and that's going to be fixed soon. That's where the weakness is. But we now know it sucks. So if something sucks, and then you get the report and it sucks, it's not like you say, wow, it sucks. You just say, okay, that's what we thought.

Jeff Marks (2:22)

Yeah, their guidance for the year assumes no recovery in the short cycle business. Unlike last year when they initially said 24 guidance, they were talking about a back half acceleration. That never happened. So why not just set a low expectation this year under promise, no recovery. And if you do get a recovery, well, you're going to do better. And if they do better and they're able to beat and raise, the stock should work even though the breakup timeline, it's going to be lengthy. It's a 2026 situation.

But it should create three better run companies at the end.

Jim Cramer (2:56)

And I think that people have to understand the aerospace company will be the jewel, like the GE Aerospace. So people are starting to get too early, by the way, because it's limbo. But the aerospace business, which was built by the way by Dave Cody, which is who made me like this stuff for much. That's the gem.

Jeff Marks (3:15)

Yeah, if you look at margins at aerospace for some of the periods, way higher.

Jim Cramer (3:20)

Start your day with my out book on the market every morning. Visit cnbc.com/morningtake to become a CNBC Investing Club member at a special rate today.

SPEAKER_5 (3:33)

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 in following any strategy or investment discussed in the content from Cramer. To view the full CNBC Investing Club Disclaimer, please visit cnbc.com/investingclubdisclaimer.

SPEAKER_6 (4:17)

At Capella University, learning the right skills could make a difference. That's why our business programs teach you relevant skills you can take from the course room to the workplace. A different future is closer than you think with Capella University. Learn more at capella.edu.