Here's our plan for both Honeywell stocks after a divergent first week of trading
C
CNBC Finance
5 min read
Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch â an actionable afternoon update, just in time for the last hour of trading on Wall Street. Stocks are higher to kick off the new trading week. Technology stocks, including the semiconductor cohort , are rebounding and regaining some momentum after back-to-back days of declines. As investors rotated back into the AI buildout theme, they moved out of healthcare and consumer retail stocks. It's been one week since Honeywell's long-awaited breakup into two standalone companies. If you add the two parts together and adjust for the spin and reverse stock split terms, the combined company is trading around $240, which is up about 6% from our last purchase in late June. However, the two stocks have performed very differently so far, so let's take a look at how each is doing. Honeywell Aerospace business is off to a strong start thanks to a big move over 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 across several critical aircraft systems, including auxiliary power units, electronic solutions, and flight control systems. Honeywell Aerospace shares traded around $220 when we gave it a price target of $285 late last Monday. It's up about 15% since then. We'd like to get more HONA shares in the portfolio soon because we think more gains are in its future. But after a $30 burst, we'd rather be patient and let the stock settle in to see if we can get a better price. Honeywell Technologies has gotten off to a much slower start, with shares down about $20, or roughly 9%, since the separation. We think part of that weakness reflects typical spin-off dynamics. Aerospace was the crown jewel inside Honeywell and the primary reason many investors owned shares in the conglomerate. Now that shareholders have a choice, those looking for pure-play aerospace exposure are selling the automation business. But post-spinoff volatility often creates opportunities, and we're interested in buying HON shares as the technical selling pressure begins to ease. Our banks are also participating in Monday's rally, with Goldman Sachs and Wells Fargo both up more than 2% on the day and comfortably outperforming the S & P 500's financials sector. While this is a mostly quiet week of earnings on Wall Street, the big banks kick off the start of second-quarter earnings season next week. Goldman's price target was raised to $1,075 from $950 at Evercore ISI, which 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 not too surprising, given how many big 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 these have given Goldman a leading position in the M & A market. The bank came in at No. 1 in global M & A fees for the first half of 2026, according to financial data provider LSEG, securing 11.7% wallet share, up 1.7 percentage points from a year ago. JPMorgan was in second place, with 8.9% share of M & A fees. Goldman's momentum has continued into the third quarter, with the bank serving as the lead advisor for Solstice Advanced Materials in the company's bid for Element Solutions . Goldman also provided $4.7 billion bridge commitment. We own Goldman to benefit from an increase in M & A during the second Trump administration, and our thesis is playing out according to plan. Goldman is up about 19% in 2026 and 45% over the past 12 months. Meanwhile, Wells Fargo was placed under a "positive catalyst watch" at JPMorgan. Analysts raised their price target to $93.50 from $86.50 into Q2 earnings. Wells should "benefit from strong trading revenues" and a "strong outlook for investment banking fees," the analysts wrote. While we hope Wells reports a good quarter on July 14, we're more guarded into the print because the bank has issued two lackluster reports in a row. These upcoming numbers will help determine whether we stay invested. Shares of Wells are down about 6% this year, though the stock bottomed in May and has since climbed almost 20% off those lows. There are no major U.S. earnings after the closing bell on Monday or before the opening bell on Tuesday. However, over in South Korea, memory chipmaker Samsung Electronics is set to report. Samsung is Club name Qnity's largest customer 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 the stocks in 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 a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
