A week ago, I pointed to two stocks that shrugged off bad news. Both of them have not plummeted subsequently; in fact, both are up. One of them, Barnes Group, had gotten its earnings estimate slashed by a KeyBanc analyst. It didn't react all that much to the news, although it sunk slightly the next trading day. Today, however another analyst upgraded it. That news was enough to send Barnes up 6.80% on the day.
The second analyst's conclusion is an interesting one. His case is made on undervaluation - specifically, that the stock's "'valuation now fully discounts expected weakness in the company's transportation and industrial end markets and uncertainty in aerospace markets'" At yesterday's price, Barnes met his free-cash-flow yield target.
Barnes' dividend yield is currently 4.97%. Two other companies with similar yields, Caterpillar and Eaton, have both shot up recently in part because it was feared they would cut their dividends. They haven't, and it's likely that they won't. Barnes' dividend was likely questioned earlier.
I won't put words in the analyst's mouth, but I supect that the upgrade is a dividend play.