Jim Cramer says investors betting against Honeywell have it all wrong.

CNBC’s Jim Cramer on Tuesday cheered Honeywell International’s $Honeywell(HON.US)$ guidance affirmation, which came alongside an announcement that the industrial conglomerate would be restructuring its business.

While some market participants feel Honeywell’s new CEO Vimal Kapur is “going to make a big move somewhere,” Cramer said on Tuesday “the most important thing I heard was they’re going to be within or above expectations” for third-quarter earnings per share. Honeywell is set to report earnings before the opening bell on Oct. 26.

“This is a heavily shorted stock of late. People feel it’s lost its way,” Cramer said on “Squawk on the Street.” “I don’t know why people feel that way. You’ve got a new CEO, and he’s going to take action.” Honeywell’s stock has declined roughly 13% year to date, underperforming the $S&P 500 Index(.SPX.US)$

In a press release, Honeywell said it is realigning its business toward three “compelling megatrends”: automation, the future of aviation, and energy transition. Beginning in the first quarter of 2024, Honeywell will report results for four new operating segments.

Honeywell’s aviation unit is the company’s crown jewel, Cramer said, while also saying the restructuring announced Tuesday is “really kind of [Kapur’s] step one of what he intends to do.”

Kapur took over Honeywell’s top job in June from Darius Adamczyk, who had led the company since 2017. Cramer’s Charitable Trust, the portfolio used by the CNBC Investing Club, owns Honeywell shares. Within the S&P 500 industrials sector, Cramer’s Trust also owns Emerson Electric $Emerson Electric(EMR.US)$ and Caterpillar. $Caterpillar(CAT.US)$