This story originally appeared on Zacks
Harley-Davidson (HOG) closed at $38.44 in the last trading session, posting a -1.51% move from the day before. This change was narrower than the S&P 500’s daily loss of 1.94%. Meanwhile, the Dow Jones lost 1.07%, and the tech-heavy Nasdaq lost 0.39%.
Heading into the day, the motorcycle maker’s shares are up 1.8% over the past month, lagging the car and truck tire sector’s 9.1% gain and the S&P 500’s 5.72% gain in that time.
Investors are hoping for some strength from Harley-Davidson as it approaches its next earnings release. The company is expected to report earnings per share of $0.41, up 34.92% from the previous quarter. Meanwhile, our latest consensus estimate reports revenue of $643.17 million, an increase of 21.13% over the prior year quarter.
Any recent changes to analyst estimates for Harley-Davidson should also be noted by investors. Recent reviews tend to reflect the latest near-term business trends. As a result, we can interpret positive rating reviews as a good sign of the company’s business outlook.
Research indicates that these discretionary revisions are directly related to the stock’s near-term price momentum. To take advantage of this, we have developed Zacks Rank, a proprietary model that takes these discretionary changes into account and provides an actionable ranking system.
The Zacks Rank system, which ranges from #1 (strong buy) to #5 (strong sell), has an impressive externally audited track record of outperformance, with the #1 stock having achieved a +25% average annual return since 1988. The Zacks Rank has declined Zacks Consensus estimated EPS by 0.64% over the past month. Harley-Davidson is currently rated by Zacks at #3 (Hold).
When looking at valuation, Harley-Davidson currently has a forward P/E ratio of 11.79. This valuation represents a discount compared to the industry’s forward P/E average of 13.28.
We can also see that HOG currently has a PEG ratio of 0.25. This common metric is similar to the widely known price-earnings (P/E) ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. Autos – Domestic stocks have, on average, a price-to-commission ratio of 1.15 based on yesterday’s closing prices.
Automotive – the domestic industry is part of the car and truck tire sector. The industry currently has a Zacks Industry Rating of 169, placing it in the lowest 34% of all 250+ industries.
Zacks Industry Ranking measures the strength of our industry groups by measuring the average Zacks rating of the individual stocks within the groups. Our research shows that industries ranked 50% outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to keep track of all these stock movement metrics and more in upcoming trading sessions.
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