Investment
CNBC

We're raising our price target on a one-time laggard that's looking better and better

July 9, 2025
06:45 PM
4 min read
AI Enhanced
moneystockstradingtechnologyindustrialsmarket cyclesseasonal analysismarket

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Every weekday, the Investing Club releases the Homestretch; an actionable afternoon update just in time for the last hour of trading.

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4 min read

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investment

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Published

July 9, 2025

06:45 PM

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CNBC

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moneystockstradingtechnologyindustrialsmarket cyclesseasonal analysismarket

Every weekday, the CNBC with Jim Cramer releases the stretch — an actionable afternoon, time for the last hour of trading on Wall Street

Market moves : Stocks were higher on Wednesday, with the S & P 500 on pace to break a two-day losing streak

The Nasdaq briefly touched a new all-time

A rally in stocks supported the market, as name Nvidia broke above a $4 trillion market value

The magic number to close at the milestone is $163

Session highs were above that, but the stock has lost some of its steam and was back below the $4 trillion market cap level

Earlier, we sent out a ary looking at possible Nvidia buy levels for new investors

Meanwhile, the minutes from the Federal Reserve's June meeting show that monetary policymakers see interest rate cuts coming

But they were divided on how many this year

AI savings : We haven't heard a lot how much money companies are saving by leveraging AI to help with their daily tasks, until now

According to Bloomberg, Microsoft Chief Commercial Officer Judson Althoff said in a presentation last week that artificial intelligence d the company more than $500 million last year in its call centers

The Bloomberg report also mentioned that AI generated 35% of the code for new ducts, speeding up their time to launch

Finally, Althoff said Microsoft's Copilot AI assistant made salespeople more effective at finding leads and closing deals

What Microsoft is doing is a great example of how companies can cut down on expenses and become more efficient through the use of AI tools

Imving story : Honeywell s were experiencing a slight pullback on Wednesday

Still, it's been a nice comeback story after a challenging period, which saw the stock fall from the $230s after Election Day last year to a low of $182 after Liberation Day

Part of the stock's recent bounce is tied to investors gaining appreciation for the breakup story and push to simplify the and make accretive acquisitions to drive growth

There also may be earnings momentum here

On June 29, Deutsche Bank named Honeywell a catalyst buy idea, anticipating an earnings beat in the second quarter and a "material" increase in the full-year outlook

We've been saying Honeywell set up 2025 for quarterly beats and guidance raises, even as it navigates a tricky tariff environment

In February, the stock fell after the company issued its initial 2025 outlook, which came in well below consensus expectations and disappointed investors

At the time, we took the other side of the trade, upgrading the stock to our buy-equivalent 1 rating

On March 5, we added to our position at around $210 because we thought this was the first time in years Honeywell had set humble, achievable guidance

We were ved right in the first quarter after Honeywell beat the consensus earnings per (EPS) estimate and raised the midpoint of its guidance range

We'll have to see how tariffs came into play during the second quarter, but we think it could happen again

Between earnings and the breakup/simplification story, we think the stock can continue to work higher over time

We are raising our price target to $255 per from $235

On Tuesday, we identified some buy levels for investors who want to start a Honeywell position

Honeywell logged a record-high close of over $240 per last week

Up next : There are no major earnings after Wednesday's closing bell

Before Thursday's open, however, we will get earnings from Delta Air Lines and Conagra Brands

On the economic data side, weekly jobless claims are out. (See here for a full list of the stocks in Jim Cramer's Charitable Trust. ) As a r to the CNBC 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 a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade

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