Was Jim Cramer Right About Honeywell International Inc. (HON)?

We recently published a list of 12 Stocks Jim Cramer Was Right About. In this article, we are going to take a look at where Honeywell International Inc. (NASDAQ:HON) stands against other stocks that Jim Cramer discusses.

Back in 2024, on May 15, Mad Money’s Jim Cramer discussed Honeywell International Inc. (NASDAQ:HON) with deep frustration, calling for a breakup to unlock value after ongoing underperformance.

“I’m talking about a company I used to like a lot — I own it for the Charitable Trust — it’s been a disappointer and it’s called Honeywell. We’ve been patient — my patience is being tried. It’s a consistent underperformer over this period by a significant margin. […] I think they should consider breaking it up, given how well it’s worked for United Technologies and GE. The modern Honeywell is just an amalgamation of completely unrelated businesses that have no theme whatsoever. […] At this point, I don’t see what Honeywell gets from keeping them under the same roof. […] I’ve not been happy this year with companies that have not made my trust money. […] Wall Street loves smaller bite-sized companies that are easier to value. The proof is in.”

His frustration proved valid, as the stock delivered just 7.87%, lagging badly despite a strong market.

Honeywell International Inc. (NASDAQ:HON) is stuck in a strategic identity crisis as its diverse industrial units fail to deliver consistent upside. During a recent CNBC program, Cramer admitted that he’s  now looking to buy back some of the company’s stock. Here’s what he said in February this year:

“But this is the quarter you have to buy because you’re finally getting the three pieces. The aerospace business is fantastic. This chemicals business is of course a little bit better than the GDP.  And then you have this automation business which has been a disappointment.

“For aerospace, they have the cockpit. They have a lot of intellectual property in a plane. They have obviously some service, I think that you do want to emulate. Now remember they’re in every plane. They’re in Bombardier, Airbus, they’re in Boeing. They’ve got a hammerlock on the group. Dave Cote put that together and I like that business. You may to just say, old your nose and buy. If you get that business.”

“That factory automation, David the warehouse business, that was bad. That was bad. . . That’s been a loser.”

“I’m totally with you. Which is why my trust owns it. We’ve been selling higher. Now I’m going to buy it back or hold on.”

Overall, HON ranks 7th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of HON as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than HON and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.