Harley-Davidson (HOG) Outpaces Stock Market Gains: What You Should Know
Harley-Davidson (HOG) closed the most recent trading day at $39.86, moving +0.83% from the previous trading session. This change outpaced the S&P 500's 0.03% gain on the day.
Prior to today's trading, shares of the motorcycle maker had lost 0.93% over the past month. This has lagged the Auto-Tires-Trucks sector's loss of 0.87% and the S&P 500's gain of 3.02% in that time.
Wall Street will be looking for positivity from HOG as it approaches its next earnings report date. In that report, analysts expect HOG to post earnings of $0.71 per share. This would mark a year-over-year decline of 8.97%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.16 billion, up 20.23% from the year-ago period.
HOG's full-year Zacks Consensus Estimates are calling for earnings of $3.29 per share and revenue of $4.35 billion. These results would represent year-over-year changes of +32800% and +33.35%, respectively.
Investors should also note any recent changes to analyst estimates for HOG. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. HOG is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, HOG currently has a Forward P/E ratio of 12.02. This valuation marks a discount compared to its industry's average Forward P/E of 14.32.
Also, we should mention that HOG has a PEG ratio of 0.49. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Automotive - Domestic was holding an average PEG ratio of 1.12 at yesterday's closing price.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 117, which puts it in the top 47% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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