Hrx shares can head significantly lower with a recessionI compare HRX to the old Devtek Corporation.
In the early 1990s Devtek stock had dropped from over $15.00 to $1.20 before rebounding and staying between $2.50 to $4.00 for years.
What caused the stock price drop ? A recession and write offs.
The earnings are very similar so hold on to your cash. Patience will be rewarded.
Another thing to watch are other large industrials such as Magna and Boeing.
They are good indicators of things to come.
....And just because HRX drops below $4.00 doesn't make it a screaming buy. It may stay there for a long time, just as Dwvtek did in the 1990s.
If you start to see more cracks in earnings the sidelines are the best way to play it !
GLTA