Happy Monday afternoon to everyone on The Street. Here's a snapshot of where markets ended the trading session, plus tomorrow's trade idea delivered to you today.

• 🟩 | US Stocks Rose on Monday. The Nasdaq Composite rose nearly 1%, while the Dow and S&P 500 made marginal gains to kick off the second half of the financial year.

• 📈 | One Notable Gainer: Shares of Tesla popped 6%, showing investor optimism ahead of the company’s second-quarter EV delivery data, which will be released tomorrow.

• 📉 | One Notable Decliner: Floor & Decor Holdings saw its stock fall 4% following a report from Spruce Point Capital that expressed concerns about the company’s management and the board’s credibility. It also called Floor and Decor’s financial reporting accuracy into question.

• 😴 | Tomorrow's Trade: This Stock Could Be a Sleeping Giant. Scroll down for more.

Plus, learn which brokers offer CBOE index options.

LAST FRIDAY’S POLL RESULTS

Do you think Volkswagen (VWAPY) and Rivian’s (RIVN) joint venture will prove successful?

🟩🟩🟩🟩🟩🟩 Yes ✅ 

🟨🟨🟨🟨⬜️⬜️ No ❌ 

MARKET MOVERS

GameStop, Nio, & Apple

GME (-6%) Shares of GameStop fell amid news that meme-stock promoter Keith Gill is being sued for an alleged “pump-and-dump” scheme with GME (NYP)

NIO (+7%) Chinese EV maker Nio reported that its vehicle deliveries rose nearly 100% in June, with 21,209 vehicles delivered last month (Barron’s)

NCLH (-6%) Shares of Norwegian Cruise Line fell following Hurricane Beryl making landfall in Grenada as a category 4 storm (NBC)

APPL (+3%) Apple’s stock rose on news that iPhone shipments in China surged 40% in May (BI)

NEE (-1%) NextEra Energy mostly recovered from a 5% decline earlier in today’s trading session following a downgrade from the Royal Bank of Canada (CNBC)

TOGETHER WITH CBOE

OVERHEARD ON THE STREET

AP: The DOJ is pushing Boeing to plead guilty to criminal fraud in connection with two deadly plane crashes involving its 737 Max jetliners.

WSJ: Delta Apparel has filed for Chapter 11 bankruptcy with a deal in hand to sell its Salt Life brand.

Investing.com: Amazon is the first company to sidestep a carbon offsetting standard developed by a non-profit funded largely by Jeff Bezos.

AP: A strike by plane mechanics forced Canada’s second-largest airline, WestJet, to cancel hundreds more flights, upending 110,000 travelers.

CNBC: A comeback for movie-going? “Inside Out 2” topped $1 billion at the global box office, the first film to do so since “Barbie.”

TOMORROW’S TRADE IDEA, TODAY

This Stock Could Be a Sleeping Giant

A Difficult Few Years

Honeywell (HON) stock hasn’t had a great record over the past few years. The industrial company used to be a bastion of consistency as far as business fundamentals and stock performance.

Covid certainly hindered Honeywell, and its EPS grew only at around a 3% annual rate between 2018 and 2023. That’s well below the S&P 500’s 8% average during the same time. The stock gained just 22% over the past 5 years, over 60% below the index.

A New Path

Now, under newly minted CEO Vimal Kapur, the company could turn things around. Honeywell is gunning for 10% annual earnings growth and 25% operating profit margins through acquisitions and improving operations. Analysts are predicting annual sales growth of 5% a year between 2023 and 2026.

In June, the company completed its acquisition of Carrier’s security business for $5 billion. The newly acquired company will be added to Honeywell’s building automation arm to increase product offerings.

The industrial giant also has plans to purchase aerospace and defense company CAES for $2 billion, to be melded into its aerospace department.

A Fair Price

For the first time in a long time, Honeywell stock looks to be priced fairly. Shares are up 2% YTD and almost 3% over the past 12 months. Analysts give it an average price target of $227.47, a 7% upside from Friday’s close. However, some analysts think Wall Street is underestimating the company. 

Honeywell is a well-established and longstanding company that some analysts believe is a sleeping giant.

TOGETHER WITH CBOE

ON OUR RADAR

Bloomberg: Hedge funds, including Anchorage Capital Advisors and Squarepoint Capital, are hoarding cobalt amid a battery metal slump.

HCP: 46% of Americans are “currently struggling to remain where they are financially," according to a Monmouth University Poll.

PT: According to Citigroup, approximately 54% of jobs across banking have a high potential to be automated.

USA Today: Financial platform Moneywise found that the average American salary has fallen 8.2% over the past five years.

WSJ: China’s manufacturing sector stayed in contraction for a second consecutive month in June.