17 Stocks in Jim Cramer’s Recent Game Plan

14. Honeywell International Inc. (NASDAQ:HON)

Number of Hedge Fund Holders: 67

Honeywell International Inc. (NASDAQ:HON) is one of the stocks in Jim Cramer’s recent game plan. Cramer discussed the company’s upcoming breakup, as he remarked:

“Honeywell reports too and this stock feels totally snakebit. Honeywell’s breaking into three viable companies, including a pure play aerospace business that I think is woefully undervalued versus competitors. I’m not saying don’t worry about the numbers. I’m saying look through them because the breakup is coming and the stock’s been hammered.”

Honeywell International Inc. (NASDAQ:HON) develops technologies and software across aerospace, industrial automation, building management, and energy and sustainability solutions. Cramer discussed the company during the October 10 episode and said:

“I want to highlight the most unheralded Honeywell breakup, the spinoff of its advanced materials division as Solstice, followed by the spinoff of its automation business. And I really like this one… Solstice emphasized that the company’s selling into some attractive end markets with strong secular trends, including the growth of advanced computing, the evolving energy landscape, as well as healthcare, personal safety and defense. All secular growers, as far as I’m concerned…

Overall, Solstice is a solid business in an industry that’s currently challenged… Once the economy stabilizes, ideally after we get some more rate cuts, you know what? This is going to be a winner, maybe a huge winner. It’s just that we were in the wrong part of the business cycle to own something like this. At the moment, I’m glad they’re getting rid of it. I need the stock of HON to go up for my trust. As for Honeywell, I am optimistic that with this breakup finally happening, they can start unlocking real value…

… So let me give you the bottom line on a complex story that I think’s going to make you money, but you got to be patient: The age of conglomerates ended a long time ago. These days, we’ve seen so many breakups create immense value for investors, and now Honeywell’s about to join the club as it spins off its advanced materials business as Solstice later this month.

I can’t be too enthusiastic about Solstice until we get more rate cuts from the Fed, but it might be worth buying on weakness somewhere down the road. As for Honeywell, the Charitable Trust is in this one for the long haul because Vimal Kapur’s three-way breakup plan will finally unshackle the company’s phenomenal aerospace business. I think that’ll be worth a heck of a lot more once the other divisions get spun out. As this stock goes down, all I can say is opportunity beckons.”