Jim Cramer says investors betting against Honeywell have it all wrong. Here’s why

Honeywell International, a renowned industrial conglomerate, has recently affirmed its guidance and announced a restructuring of its business, receiving praise from CNBC’s Jim Cramer. Cramer highlighted the importance of Honeywell meeting or exceeding expectations for third-quarter earnings per share, stating that this news is particularly significant considering the stock’s recent decline and the perception that the company has lost its way.

With a new CEO, Vimal Kupar, at the helm, Honeywell is expected to take decisive action to revitalize its operations. Cramer emphasized that Honeywell’s aviation unit is its crown jewel, underscoring the company’s strength in this sector. The restructuring announced by Kupar is seen as the first step towards his vision for the company’s future.

Honeywell’s decision to realign its business around three compelling megatrends – automation, the future of aviation, and energy transition – is a strategic move that aligns with the evolving market landscape. By focusing on these areas, Honeywell aims to position itself at the forefront of technological advancements and capitalize on emerging opportunities.

The stock market has reacted positively to Honeywell’s affirmation of guidance and restructuring plans, with Cramer’s Charitable Trust, the portfolio used by the CNBC Investing Club, holding shares in the company. Additionally, Cramer’s Trust also owns shares in other prominent companies within the S&P 500 industrials sector, including Emerson Electric and Caterpillar.

Honeywell’s upcoming earnings report on October 26 will be closely watched by investors, as it will provide further insights into the company’s financial performance and the progress made under Kupar’s leadership. As Honeywell continues to navigate its transformation, market participants are eagerly anticipating the positive impact of the restructuring on the company’s future growth and profitability.

Overall, Honeywell’s affirmation of guidance and restructuring plans have instilled confidence in the market, signaling a new era under the leadership of CEO Vimal Kupar. With a renewed focus on key megatrends and a commitment to taking decisive action, Honeywell is poised to regain its momentum and deliver value to its shareholders.