Why Motorola Solutions Inc. Shares Slipped Today

While Fools should generally take the opinion of Wall Street with a grain of salt, it's not a bad idea to take a closer look at particularly stock-shaking upgrades and downgrades -- just in case their reasoning behind the call makes sense.

What: Shares of Motorola Solutions  (NYSE: MSI  ) slipped 1% today after Goldman Sachs downgraded the communication equipment technologist from neutral to sell.

So what: Along with the downgrade, analyst Simona Jankowski planted a price target of $67 on the stock, representing just 2% worth of upside to yesterday's close. So while momentum traders might be attracted to the stock's strength in recent weeks, Jankowski's call suggests an increasingly uneasy feeling on Wall Street over Motorola's risk/reward trade-off. 

Now what: According to Goldman, there are much better opportunities in the sector. "We downgrade MSI to Sell from Neutral, as we see a lack of catalysts and path to drive outperformance," stated Jankowski. "Importantly, this is a relative rather than absolute call, as we see more upside elsewhere in our coverage given our sector view upgrade to Attractive. MSI does not have as much exposure to the key factors that make us more positive on the sector as a whole." Of course, with the stock continuing to trade at a seemingly reasonable forward P/E of 14, those concerns might be offering tech-savvy growth investors with an attractive entry point.

More reliable ways to build wealth
One of the dirty secrets that few finance professionals will openly admit is the fact that dividend stocks as a group handily outperform their non-dividend paying brethren. The reasons for this are too numerous to list here, but you can rest assured that it's true. However, knowing this is only half the battle. The other half is identifying which dividend stocks in particular are the best. With this in mind, our top analysts put together a free list of nine high-yielding stocks that should be in every income investor's portfolio. To learn the identity of these stocks instantly and for free, all you have to do is click here now.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2873736, ~/Articles/ArticleHandler.aspx, 8/30/2014 6:39:58 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement