Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. Markets: Stocks are rebounding from Wednesday’s sell-off as interest rates retreat from their recent highs. The tech-heavy Nasdaq is leading the market higher with strength in technology stocks. Club name Amazon got a midday bump after it was reported that Bill Ackman’s Pershing Square started a new position in Amazon in April. Wheeling and dealing: Honeywell has made yet another deal. The Club industrial conglomerate said on Thursday that it bought Johnson Matthey’s catalyst technologies unit for about $2.4 billion. That unit is a global leader in the licensing of process technology and supply of catalysts used in manufacturing. It will be integrated into Honeywell’s energy and sustainability solutions (ESS) business. The deal is expected to be accretive to Honeywell’s adjusted earnings per share in its first full year of ownership and is expected to close by the first half of 2026. It’s not a big transaction, but it aligns with management’s ongoing strategy of investing in value-accretive businesses that Honeywell can enhance by leveraging its existing installed base and complementary product offerings. It also looks fairly priced, with the transaction value representing 11 times estimated 2025 earnings before interest, taxes, depreciation and amortization (EBITDA), inclusive of tax benefits and run-rate synergies Honeywell expects to generate. Honeywell has been on a shopping spree over the past year and a half, spending $11 billion on deals to boost the company’s growth rate. In addition to integrating all these days, the company is splitting up into three different companies including a pure-play aerospace firm. We are fans of Honeywell’s planned breakup, as each resulting entity stands to gain from a sharper strategic focus. Johnson Matthey’s catalyst unit will be apart of the Honeywell Automation company. Up next: Intuit , Deckers Outdoor , Workday , Ross Stores , and Autodesk are scheduled to report earnings after the market closes on Thursday. Booz Allen Hamilton reports Friday . We’ll see some housing data in new home sales and building permits. Earlier Thursday, the National Association of Realtors said existing home sales fell 0.5% month over month in April to a seasonally adjusted rate of 4 million, representing the slowest April pace since 2009. (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.
Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street.
www.cnbc.com
#Stocks #bounce #Honeywells #buying #spree #continues
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