Jim Cramer is pushing back against Wall Street analysts after Honeywell received a rare double downgrade that sent its shares lower. The long-time market commentator said the market overreacted and argued that analysts ignored the company’s long-term strengths and strategic progress.
The downgrade came from Wolfe Research, which cut Honeywell from “outperform” to “underperform,” citing weakening demand in several key business lines. Analysts pointed to softer aerospace orders, slowing automation projects, and margin pressure across its industrial divisions. The move surprised investors because Honeywell had delivered stable results in recent quarters and continued to emphasize high-growth areas such as automation, advanced materials, and aerospace technologies.
Cramer called the downgrade “shameful,” insisting it focused too heavily on short-term concerns. He argued that Honeywell remains one of the most diversified industrial technology companies in the U.S. and that its long-term trajectory looks strong. He also said the analysts ignored Honeywell’s continued investments in automation, AI-enabled systems, clean-energy projects, and safety technologies.
He highlighted Honeywell’s aerospace division as a pillar of growth. The business benefits from strong aircraft demand, rising defense spending, and ongoing modernization cycles. Cramer said these trends will continue to drive revenue, even if new orders fluctuate. He also noted that Honeywell’s building technologies and energy solutions units should deliver steady performance as companies upgrade facilities and adopt more automation.
Cramer reminded viewers that Honeywell is known for disciplined execution and strong balance sheet management. The company maintains consistent cash flow and continues to invest in innovation while returning capital to shareholders through buybacks and dividends. He believes these fundamentals make the stock attractive for long-term investors, even if near-term performance varies.
The downgrade reflects a cautious mood in the broader market. Analysts have become more sensitive to slowing economic data and softer industrial demand. Many firms expect growth to cool across manufacturing and construction, raising worries about earnings pressure for large industrial names. Honeywell’s shares have also been affected by uncertainty around global supply chains, fluctuating aerospace demand, and uneven trends in manufacturing automation.
Still, Cramer said the reaction has gone too far. He emphasized that Honeywell has a history of weathering downturns better than peers due to its disciplined cost controls and broad portfolio. He encouraged investors to look at the company’s long-term plans, including its push into automation software, smart building platforms, and advanced energy storage technologies.
He also pointed out that analysts have misjudged Honeywell before. Past downgrades often occurred before the company delivered stronger-than-expected earnings. Cramer believes the latest call will likely fall into that same category, especially if the economy stabilizes or if aerospace demand exceeds expectations in the coming quarters.
For now, he views the stock as an opportunity for patient investors. While short-term challenges exist, he argued that Honeywell remains one of the most reliable industrial innovators in the market.
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