GE hits 8-year high--is it a buy?

On Monday the post-Brexit rally continued. The S&P 500 broke its all-time intraday high shortly after the open, and the Nasdaq hit 5,000 for the first time since last December.

GE was one of the stocks pushing markets higher.

Shares of the company traded at levels not seen in 8 years. The surge higher followed the announcement of a partnership with Microsoft that will bring the Connecticut-based company's internet-of-things platform to Microsoft's cloud.

But with the stock hitting record highs, is now the time to take profits? Or is the stock heading higher? "Halftime Report" expert and GE shareholder Josh Brown discussed if there's more upside ahead.

Brown ultimately thinks GE still has higher to go. Underlying his belief is the company's shift in its focus and fundamental business.

The company recently became the first firm to lose its designation as a "systemically important" financial institution. This shedding of the label -- in addition to meaning less scrutiny from authorities -- highlights the company's changing business. Once focused on the banks, it's now zeroing in on faster-growing sectors like aerospace and the internet-of-things.

"You have a company here that has gotten rid of the bad stuff, has doubled down on the good stuff...and has the balance sheet flexibility to buy back more stock, raise their dividends, and even do acquisitions," Brown argued on the "Halftime Report".

Brown believes the company's investment in growing sectors will lead to growing profits.

"Now what are they [GE] focused on? The very best things to be focused on. Aerospace, the internet of things, health care, and robotics. Four of the most important markets over the next 5 to 10 years...They're really focused on the things that I think you want to be focused on if you're going to grow," Brown argued.

Sarat Sethi -- also an owner of the stock -- agrees with Brown that GE is currently undergoing a significant change.

Sethi added that there's a lot of misperception in the market about what kind of company GE actually is. Many still regard it as an old conglomerate, overlooking its new vision and growth potential.

In addition to a new vision, the company also has strong fundamentals -- one of the things Sethi looks for as a value-investor.

"The balance sheet is really strong. They have a lot of cash on the sideline, and their dividend is higher than the market's," he argued.

Brown added that the company's decision to move its headquarters from Fairfield, Connecticut to Boston is a physical manifestation of its shifting focus.

"[Boston] is where the talent is in health care and biotech, automation and software. They [GE] want to be viewed differently than the GE of old, and I think that's a really symbolic step, but it has real world ramifications beyond just the image."

Josh Brown & Sarat Sethi are long GE.