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Harley-Davidson (HOG) Gains But Lags Market: What You Should Know

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Harley-Davidson (HOG) closed at $33.74 in the latest trading session, marking a +1.11% move from the prior day. The stock lagged the S&P 500's daily gain of 2.44%. At the same time, the Dow added 1.65%, and the tech-heavy Nasdaq gained 0.28%.

Coming into today, shares of the motorcycle maker had lost 11.37% in the past month. In that same time, the Auto-Tires-Trucks sector lost 18.6%, while the S&P 500 lost 9.65%.

Harley-Davidson will be looking to display strength as it nears its next earnings release, which is expected to be February 8, 2022. On that day, Harley-Davidson is projected to report earnings of -$0.41 per share, which would represent year-over-year growth of 34.92%. Meanwhile, our latest consensus estimate is calling for revenue of $643.17 million, up 21.13% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for Harley-Davidson. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Harley-Davidson currently has a Zacks Rank of #4 (Sell).

Looking at its valuation, Harley-Davidson is holding a Forward P/E ratio of 10.08. For comparison, its industry has an average Forward P/E of 10.7, which means Harley-Davidson is trading at a discount to the group.

Investors should also note that HOG has a PEG ratio of 0.22 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Automotive - Domestic stocks are, on average, holding a PEG ratio of 0.86 based on yesterday's closing prices.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 102, putting it in the top 40% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow HOG in the coming trading sessions, be sure to utilize Zacks.com.

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