Immediately after the opening bell, you purchase 50 shares of Honeywell Aerospace stock at approximately $204.07 and 100 shares of Intel stock at approximately $93.84. Following the transaction, the Jim Cramer Charitable Trust will own 320 shares of HONA stock, increasing its weighting in the portfolio from 1.4% to 1.7%, and will own 1,200 shares of INTC stock, increasing its weighting from 2.6% to 2.85%. Buy two stocks on Monday as a temporary break in hostilities between the US and Iran causes oil prices to fall. Stock futures are also rising steadily. Honeywell Aerospace has had a rocky debut since being separated from its former parent company Honeywell Technologies late last month. HONA’s stock price has fallen from about $220 per share on June 29 to the low $200s. Meanwhile, rising oil prices have reignited concerns that airlines will cut flights to compensate for soaring fuel costs, putting pressure on overall aerospace trade. Analyst reactions to HONA are also mixed, with more hold ratings than buy ratings. However, the stock currently trades at about 24 times estimated 2027 earnings per share, according to FactSet, which is considered too high a discount compared to peer RTX. Pratt & Whitney & Collins Aerospace’s parent company trades at a price-to-earnings ratio of 27. Now that Honeywell Aerospace is an independent company, management’s 2030 financial goals of 6% to 8% compound annual growth in organic sales and adjusted earnings before interest and taxes (EBIT) of more than $6.5 billion appear achievable over time. Inter’s standing will also improve after Friday’s terrible reversal. Even though Intel reported better-than-expected second-quarter results, with adjusted earnings per share twice the consensus estimate, its stock fell about 7% on Friday amid a sell-off in semiconductor stocks. We believe this weakness is a buying opportunity. One of the reasons for the stock sell-off was concerns about increased capital spending, but this should have been taken as a signal to the market that Intel is confident in securing customer wins with its third-party foundry business. (Jim Cramer’s charitable trusts are Long INTC, HON, HONA. See here for a complete list of stocks.) As a subscriber to Jim Cramer’s CNBC Investment Club, you will receive trade alerts before Jim makes a trade. After Jim sends a trade alert, he waits 45 minutes before buying or selling stocks in his charitable trust’s portfolio. If Jim talks about a stock on CNBC TV, he will issue a trade alert and then wait 72 hours before executing the trade. The above investment club information is subject to our Terms of Use and Privacy Policy, along with our disclaimer. No fiduciary duties or obligations exist or arise from your receipt of information provided in connection with the Investment Club. No specific results or benefits are guaranteed.
