Shortly after the opening bell, we’ll be selling 15 shares of CrowdStrike at roughly $456. In addition, we are buying 65 shares of Honeywell at roughly $208. Following Wednesday’s trades, Jim Cramer’s Charitable Trust will own 230 shares of CRWD, decreasing its weighting to 2.8% from about 3%. The Trust, the portfolio used by the Club, will also own 265 shares of HON, increasing its weighting to about 1.5% from about 1.12%. CrowdStrike’s stock has been a racehorse this year and a top ten gainer in the S & P 500, thanks to its 33% gain. The latest string of gains has happened in reaction to several strong prints from cybersecurity firms Fortinet , Check Point , and most recently Club stock Palo Alto Networks , which hit a new all-time high Tuesday. CRWD 1Y mountain CrowdStrike 1 year We expect Crowdstrike will continue this flow of good news when it reports earnings on March 4. But we also think it’s prudent to make a small sale to lock in our big gains with the stock up about 13% since our last trim about three weeks ago. Despite these sales, we remain long-term believers in the importance of cybersecurity spending, which is why we own two: CrowdStrike and Palo Alto Networks. From this sale, we will realize a great gain of about 48% on CrowdStrike stock purchased in October 2024. HON 1Y mountain Honeywell 1 year We’re also picking up more shares in Honeywell. This industrial was one of three stocks we highlighted on Tuesday’s Homestretch . We slashed our Honeywell position and sold shares four separate times between last November and mid-January when the stock rallied despite our concerns about the firm’s fundamentals. Our worries proved correct because when the company issued its 2025 adjusted earnings per share outlook of $10.10 to $10.50 two weeks ago, it was well below the street consensus estimate of $10.92. The weak outlook, however, overshadowed good news for shareholders. Honeywell will separate its gem of an aerospace business from its lagging automation division and continue with its spinout of the advanced materials unit . Although we have some caution that the lengthy timeline of this multistep breakup plan could keep some investors on the sidelines until it gets closer to the completion date, we’re finally ready to buy back the stock we sold. We upgraded our rating to 1 after the quarter because we think management learned their lesson from 2024 and set earnings expectations so low that they’re beatable. If Honeywell can beat and raise through the year, then the stock should be able to work higher from here. (Jim Cramer’s Charitable Trust is long HON and CRWD. 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.
