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Harley-Davidson (HOG) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Harley-Davidson (HOG) closed at $35.30, marking a +1.06% move from the previous day. This move outpaced the S&P 500's daily gain of 0.31%. Elsewhere, the Dow gained 0.05%, while the tech-heavy Nasdaq added 0.14%.

Heading into today, shares of the motorcycle maker had lost 8.92% over the past month, outpacing the Auto-Tires-Trucks sector's loss of 12.83% and lagging the S&P 500's loss of 1.38% in that time.

Wall Street will be looking for positivity from Harley-Davidson as it approaches its next earnings report date. In that report, analysts expect Harley-Davidson to post earnings of $1.28 per share. This would mark a year-over-year decline of 3.76%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.37 billion, up 3.12% from the year-ago period.

HOG's full-year Zacks Consensus Estimates are calling for earnings of $4.18 per share and revenue of $4.88 billion. These results would represent year-over-year changes of -0.24% and +7.47%, respectively.

Investors should also note any recent changes to analyst estimates for Harley-Davidson. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.93% lower. Harley-Davidson is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Harley-Davidson currently has a Forward P/E ratio of 8.36. For comparison, its industry has an average Forward P/E of 11.11, which means Harley-Davidson is trading at a discount to the group.

Also, we should mention that HOG has a PEG ratio of 0.94. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Automotive - Domestic stocks are, on average, holding a PEG ratio of 1.09 based on yesterday's closing prices.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 158, which puts it in the bottom 38% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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