Here’s our plan for both Honeywell stocks after a divergent first week of trading
Every weekday, CNBC Investment Club with Jim Cramer publishes Homestretch, an actionable afternoon update just in time for the final hour of trading on Wall Street. Stocks are on the rise to start the new trading week. Technology stocks, including the semiconductor group, are recovering from consecutive declines and gaining some momentum. Investors exited healthcare and consumer retail stocks as they returned to the AI development theme. It’s been a week since Honeywell’s long-awaited split into two independent companies. If you put the two pieces together and adjust for the spin and reverse stock split terms, the combined company is trading around $240; This represents an increase of approximately 6% from our last purchase at the end of June. But the two stocks have performed very differently so far, so let’s take a look at how each has performed. The Honeywell Aerospace business is off to a strong start thanks to big moves in the last three sessions. This was our preferred stock between the two companies because aviation is a more attractive long-term growth story than industrial automation. Honeywell Aerospace is a leader in many critical aircraft systems, including auxiliary power units, electronic solutions and flight control systems. Shares of Honeywell Aerospace traded around $220 late last Monday when we set a price target of $285. It’s up about 15% since then. We want to buy more HONA shares in our portfolio soon because we think there will be more earnings in the future. But after a breakout at $30, we’d rather be patient and let the stock settle to see if we can get a better price. Honeywell Technologies has had a much slower start, with its shares down around $20, or roughly 9%, since the split. We think some of this weakness reflects typical separation dynamics. Aviation was Honeywell’s crown jewel and the primary reason many investors held shares in the conglomerate. Now that shareholders have a choice, those looking for a pure-play experience in aviation are selling the automation business. But post-spinoff volatility often creates opportunities, and we are interested in buying HON shares as technical selling pressure begins to ease. Our banks are also participating in Monday’s rally; Goldman Sachs and Wells Fargo were up more than 2% on the day, easily outpacing the S&P 500’s financial sector. While this has been a mostly quiet earnings week on Wall Street, major banks will kick off the start of second-quarter earnings season next week. Goldman’s price target was raised to $1,075 from $950 on Evercore ISI, and the company also 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 hardly surprising, given the number of large deals Goldman has worked on this year. For example, Goldman was an advisor on Dominion Energy’s $66.8 billion merger with NextEra Energy, which was announced in May. Transactions like this gave Goldman a leading position in the mergers and acquisitions market. The bank ranked No. 1 in global M&A fees in the first half of 2026, achieving 11.7% share of wallet, up 1.7 points from the previous year, according to financial data provider LSEG. JPMorgan ranked second with an 8.9% share of merger and acquisition fees. Goldman’s momentum continued into the third quarter; bank served as lead counsel to Solstice Advanced Materials on the company’s Element Solutions offering. Goldman also provided $4.7 billion in bridge commitments. We acquired Goldman to capitalize on the increase in mergers and acquisitions during the second Trump administration, and our thesis is progressing as planned. Goldman is up about 19% in 2026 and 45% in the last 12 months. Wells Fargo, meanwhile, was placed on “positive catalyst watch” at JPMorgan. Analysts raised their price target for second-quarter earnings to $93.50 from $86.50. Analysts wrote that Wells should “benefit from strong trading revenues” and “a strong outlook for investment banking fees.” While we hope Wells will have a good quarter come July 14, we’re more cautious about the pressure as the bank has issued two weak reports in a row. These upcoming numbers will help us determine whether we should continue investing. Shares of Wells have fallen about 6 percent this year, but the stock bottomed in May and has since climbed nearly 20 percent off that low. There are no significant US gains after Monday’s closing bell or before Tuesday’s opening bell. However, South Korean memory chip maker Samsung Electronics will report. Samsung is Club name Qnity’s largest customer and a key cog in the overall semiconductor supply chain, so Wall Street will be paying attention to these results. On the economic data side, the New York Federal Reserve will release its monthly survey of one-year consumer inflation expectations on Tuesday. (See here for a complete list of stocks in Jim Cramer’s Charitable Trust.) When you subscribe 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 trading alert before buying or selling a stock in his charitable foundation’s portfolio. If Jim talked about a stock on CNBC TV, he waits 72 hours after issuing the trading alert before executing the trade. THE ABOVE INVESTMENT CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, TOGETHER WITH THE DISCLAIMERS. NO CIVIL OBLIGATIONS OR DUTIES EXIST OR SHALL BE RESULTING FROM YOUR RECEIVING ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB. NO SPECIFIC RESULT OR PROFIT CAN BE GUARANTEED.
