Lazard Lowers Harris to Sell

Shares of Harris Corp. ($HRS) are down today after Lazard Capital lowered their rating on the stock to “Sell.” The stock has been down as much as 4.7% today. This comes after a drop of 4% on Friday.

Let me caution investors not to get too rattled by this sell-off. I think Lazard is way off base here but let’s remember that Harris has had a very strong run since the summer. I had purposely kept my buy-below price at $50 even though the stock had cleared that hurdle. It even broke $52 per share recently. We want to stay disciplined and wait for good stocks to come to us.

Good stocks can bounce around like that. In fact, Harris lost 15.6% between April 30 and May 18 of this year. Despite that, it’s still up over 30% on the year for us. That’s just how the stock market works.

Harris is going for less than 10 times earnings, and the lower share price gives the dividend a yield of 3.15%. Only a few weeks ago, Harris raised their dividend by 12%. I expect another good earnings report in a few weeks. Harris remains a very solid buy.

Posted by on October 15th, 2012 at 12:20 pm


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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