Harley-Davidson (HOG) closed at $38.80 in the latest trading session, marking a -0.61% move from the prior day. This move lagged the S&P 500’s daily gain of 0.92%. Elsewhere, the Dow gained 0.51%, while the tech-heavy Nasdaq added 0.54%.
Prior to today’s trading, shares of the motorcycle maker had gained 1.3% over the past month. This has outpaced the Auto-Tires-Trucks sector’s loss of 1.05% and the S&P 500’s loss of 0.85% in that time.
Harley-Davidson will be looking to display strength as it nears its next earnings release. 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%. Our most recent consensus estimate is calling for quarterly revenue of $643.17 million, up 21.13% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Harley-Davidson. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.64% lower. Harley-Davidson currently has a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Harley-Davidson has a Forward P/E ratio of 11.8 right now. For comparison, its industry has an average Forward P/E of 13.08, which means Harley-Davidson is trading at a discount to the group.
Also, we should mention that HOG has a PEG ratio of 0.25. 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. The Automotive – Domestic was holding an average PEG ratio of 1.08 at yesterday’s closing price.
The Automotive – Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 173, putting it in the bottom 33% 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.
To follow HOG in the coming trading sessions, be sure to utilize Zacks.com.
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