Industrial-focused stocks have been stumbling since the start of the Iran war on fears that higher oil prices will ignite a fresh wave of inflation and make it difficult to transport goods to and from the Mideast. Club holdings Honeywell , Dover , and Linde each have a way to weather the storm. Honeywell Honeywell CEO Vimal Kapur warned Tuesday that shipping delays in the Mideast could be a slight drag on first-quarter revenue, and the stock dropped more than 1%. Speaking at the Bank of America Global Industrials Conference, Kapur also left the company’s 2026 outlook unchanged. It’s this second part that investors should be focusing on. “We’re not letting any short-term disappointments, short-term timing issues get in the way of our long-term thesis in Honeywell, which is centered around the upcoming separation of its aerospace division from automation,” Jeff Marks, the Investing Club’s director of portfolio analysis, said during Tuesday’s Morning Meeting. “We view that as a value unlock.” It’s worked before. Last year, Honeywell spun off Solstice Advanced Materials on Oct. 30. Since then, Honeywell shares are up 13%. We took some profits in Honeywell in early February after a post-earnings stock pop. Club name DuPont also had success with last year’s spin-off of its Qnity Electronics business. DuPont shares are up 31% since then. We also took some profits in DuPont last month. Dover Dover CEO Richard Tobin said Tuesday that “orders are tracking great” despite the conflict overseas. Speaking at the JPMorgan Industrials Conference, Tobin did project an uptick in energy and freight costs but maintained that neither poses a significant threat to the company’s financials. Wells Fargo upgraded Dover to a buy from hold rating Tuesday, arguing that the stock is a winner from the war in two ways. If there’s a de-escalation, they said, the market will focus on Dover’s accelerating organic growth and its large exposure to businesses with shorter lead times like fuel pumps and refrigeration components. If the conflict continues, they said, Dover is protected because it has limited Middle East exposure, making up less than 1% of sales. The industrial conglomerate has stellar pricing power and the cash to step up share repurchases. We agree with the commentary from the analysts at Wells Fargo, but we’re keeping our hold-equivalent 2 rating . The Club took some profits around current levels in January after a nice rally. Linde Mizuho raised its Linde price target to $560 per share from $525, arguing that the company stands to gain from elevated helium prices due to Iran’s retaliatory attacks on helium-rich Qatar. Helium is used in many industries, from semiconductor manufacturing to aerospace. Mizuho’s note echoes what Jim Cramer has been saying about Linde, which does business in all kinds of other industrial gases as well, like oxygen for hospitals and cryogenics to keep food fresher. Jim pointed out Linde’s helium storage cavern in Texas, which allows the company to buy and store helium when prices are low, and then sell at a premium later on. “This thing can go to its all-time high because they happen to have a helium reserve,” Jim said during Friday’s Morning Meeting. The Club has a price target of $510 on Linde and a buy-equivalent 1 rating. (Jim Cramer’s Charitable Trust is long HON, LIN, DOV, DD, Q. 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.
