Here’s our plan for both Honeywell stocks after a different first week of trading
Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch – an afternoon update that can work, during the last hour of trading on Wall Street. Stocks are higher to start the new trading week. Technology stocks, including the semiconductor group, are rebounding and gaining some momentum after consecutive days of bearish reversals. As investors circled back to the building AI theme, they exited healthcare and consumer stocks. It has been one week since Honeywell split into two independent companies. If you combine these two components and adjust for stock split terms and reverse spin, the combined company is trading at about $240, which is about 6% from our last purchase at the end of June. However, the two stocks have performed very differently so far, so let’s take a look at how each has fared. Honeywell Aerospace’s business has gotten off to a good start thanks to big moves in the past three sessions. This was our preferred stock of the two companies because aerospace is a more attractive long-term growth story than industrial automation. Honeywell Aerospace holds leading positions in all critical aircraft systems, including auxiliary power units, electronic solutions, and flight control systems. Shares of Honeywell Aerospace traded around $220 when we gave it a price target of $285 late last Monday. It’s up about 15% since then. We would like to get more HONA shares in the portfolio soon because we think more gains are in the future. But after the $30 breakout, we’d like to be patient and let the stock stabilize to see if we can get a better price. Honeywell Technologies is off to a much slower start, with shares down about $20, or about 9%, since the split. We think that part of that weakness reflects the normal spin-off dynamics. Aerospace was the crown jewel within Honeywell and the main reason many investors own shares in the conglomerate. Now that shareholders have a choice, those who want exposure to the pure-play space are selling the automation business. But post-spinoff volatility often creates opportunities, and we’re interested in buying HON shares as selling pressure begins to ease. Our banks also took part in Monday’s rally, Goldman Sachs and Wells Fargo both rose more than 2% on the day and outperformed the S & P 500 financial sector. Although this is a very quiet week for earnings on Wall Street, the big banks will start their second quarter earnings season next week. Goldman’s price target was raised to $1,075 from $950 at Evercore ISI, which reiterated its buy rating. Analysts expect the bank, which reports on July 14, to benefit from bullish sentiment in capital markets and strong activity in mergers and acquisitions (M & A). That’s not too surprising, given how many big deals Goldman has worked on this year. For example, Goldman was an adviser on Dominion Energy’s $66.8 billion merger with NextEra Energy, which was announced in May. Transactions like this have given Goldman a leading position in the M & A market. The bank came in at No. 1 in global M & A payments in the first half of 2026, according to financial data provider LSEG, receiving a wallet share of 11.7%, up 1.7 percent from last year. JPMorgan was in second place, with an 8.9% share of M & A funds. Goldman’s momentum continued until the third stage, with the bank serving as lead advisor to Solstice Advanced Materials in the company’s Element Solutions campaign. Goldman also provided a bridge commitment of $4.7 billion. We are holding Goldman to benefit from the M&A boom during the second Trump administration, and our thesis is playing out according to plan. Goldman is up about 19% in 2026 and 45% in the past 12 months. Meanwhile, Wells Fargo was placed under a “stimulus watch” at JPMorgan. Analysts raised their price target to $93.50 from $86.50 for Q2 earnings. Wells should “benefit from strong trading capital” and “a strong outlook for investment banking,” the analysts wrote. Although we hope that Wells reports a good quarter on July 14, we are very cautious in the writing because the bank has issued two ambiguous reports in a row. These upcoming numbers will help determine if we stay invested. Shares of Wells are down about 6% this year, though the stock bottomed in May and is up about 20% since that decline. There are no major US earnings after the closing bell on Monday or before the opening bell on Tuesday. However, in South Korea, memory maker Samsung Electronics is set to report. Samsung is the largest customer of the Qnity group name and an important cog in the overall semiconductor supply chain, so Wall Street will pay attention to these results. On the economic data side, the New York Federal Reserve on Tuesday will release its monthly survey of one-year consumer inflation expectations. (See here for a full list of stocks from Jim Cramer’s Charitable Trust.) 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 stock in his charity portfolio. When Jim talks about a stock on CNBC TV, he waits 72 hours after issuing a trade warning before making a trade. THE PRIVATE INFORMATION OF THE BURNING CLUB IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, AND OUR PRIVACY POLICY. NO LEGAL LIABILITY OR OBLIGATION EXISTS, OR IS CREATED, BY YOUR ACCEPTANCE OF ANY INFORMATION PROVIDED BY CONTACTING THE INVESTMENT CLUB. NO PARTICULAR RESULT OR INTEREST IS GUARANTEED.
