Harley-Davidson (HOG) Gains as the Market Falls: What You Need to Know
Harley-Davidson (HOG) closed the last day of trading at $41.39, moving +0.17% from the previous trading session. This change outpaced the S&P 500’s 0.53% loss on the day. Meanwhile, the Dow lost 0.29% and the Nasdaq, a technology-heavy index, lost 0.1%.
Heading into today, shares of the motorcycle maker had gained 13.61% over the past month, outpacing the Auto-Tyres-Trucks sector’s 6.14% loss and 4.24% loss. % of the S&P 500 during this period.
Harley-Davidson will be looking to show strength ahead of its next earnings release. On that day, Harley-Davidson is expected to report earnings of $1.51 per share, which would represent a 10.12% year-over-year decline. Meanwhile, Zacks’ consensus estimate for revenue calls for net sales of $1.34 billion, up 8.44% from the year-ago period.
Looking to the full year, our Zacks consensus estimates suggest analysts are expecting earnings of $4.27 per share and revenue of $4.91 billion. These totals would mark changes of +1.91% and +8.13%, respectively, from last year.
Investors might also notice recent changes in analyst estimates for Harley-Davidson. These revisions generally reflect the latest short-term trading trends, which may change frequently. Thus, positive revisions to estimates reflect analysts’ optimism about the company’s business and profitability.
Based on our research, we believe that these estimate revisions are directly related to the team’s close stock movements. To benefit from this, we have developed the Zacks Rank, a proprietary model that takes into account these estimation changes and provides an actionable rating system.
The Zacks ranking system ranges from #1 (strong buy) to #5 (strong sell). It has a remarkable track record of third-party audited success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past 30 days, our consensus EPS projection has increased by 11.69%. Harley-Davidson currently holds a Zacks rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Harley-Davidson has a Forward P/E ratio of 9.67 at this time. For comparison, its industry has an average Forward P/E of 12.65, which means Harley-Davidson is trading at a discount to the group.
It should also be noted that HOG currently has a PEG ratio of 0.21. This popular measure is similar to the widely known P/E ratio, except that the PEG ratio also takes into account the company’s expected earnings growth rate. The HOG industry had an average PEG ratio of 0.92 at yesterday’s close.
The Automotive – Domestic industry is part of the Auto-Tyres-Trucks sector. This industry currently has a Zacks industry ranking of 114, which places it in the top 45% of over 250 industries.
The Zacks Industry Ranking assesses the strength of our individual industry groups by measuring the average Zacks Ranking of individual stocks within the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and more, at Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.