Defense contractors have been roaring higher, with the Street largely coming to terms with sequester, noted Jim Cramer on Tuesday's broadcast.
Well, we should say most defense contractors have rallied. Harris Corporation has been the exception to this rule - it's traded about flat for the year.
At first glance that may seem curious. Harris makes state of the art communications equipment such as tactical radio equipment. Shouldn't Harris rally along with other defense sector stocks?
Cramer thinks the underperformance is largely because Harris is not a pure play defense contractor. "Although the company supplies the military, they also have a commercial component," Cramer explained.
Because the government and commercial markets have very different requirements and purchasing protocols, Cramer doesn't think the stock will rally significantly until management takes aggressive action.
"I think Harris Corporation needs to break itself up," he said.