Shortly after the opening bell, we will buy 50 shares of Honeywell Aerospace at roughly $204.07 and 100 shares of Intel at roughly $93.84. Following the trades, Jim Cramer’s Charitable Trust will own 320 shares of HONA, increasing its weighting in the portfolio to 1.7% from 1.4%, and 1,200 shares of INTC, increasing its weighting to 2.85% from 2.6%. We’re buying two stocks Monday as a temporary break in hostilities between the U.S. and Iran cause oil prices to fall. Stock futures are also solidly higher. Honeywell Aerospace has had a difficult debut since being separated from former parent Honeywell Technologies late last month. Shares of HONA have fallen from about $220 apiece on June 29 to the low $200s. During this time, the broader aerospace trade has been under pressure as rising oil prices have reignited concerns that airlines could reduce flights to offset higher fuel costs. The analyst reaction to HONA has also been mixed, with more hold than buy ratings on the Street. But with shares currently trading at about 24 times 2027 earnings per share estimates, according to FactSet, we think the discount is too steep compared to peer RTX ; the parent of Pratt & Whitney and Collins Aerospace trades at 27 times earnings. Now that Honeywell Aerospace is a standalone company , execution should improve over time and management’s 2030 financial targets of a 6% to 8% organic sales compound annual growth rate, with over $6.5 billion in adjusted earnings before interest and taxes (EBIT), look achievable. We’ll also add to our Intel position following a nasty reversal on Friday. Even though Intel reported a much better-than-expected second-quarter results ,with adjusted earnings per share doubling the consensus estimate, shares fell roughly 7% on Friday amid a broader sell-off in semiconductor stocks. We think this weakness is a buying opportunity. One reason why the stock sold off was on concerns about rising capital expenditures, but this should have been taken as a signal to the market that Intel is confident it will secure customer wins in its third-party foundry business. (Jim Cramer’s Charitable Trust is long INTC, HON and HONA. See here for a full list of the stocks.) 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.
