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

This story originally appeared on Zacks

Harley-Davidson (HOG) closed the most recent trading day at $38.18, moving -0.37% from the previous trading session. This move lagged the S&P 500’s daily gain of 0.08%. Elsewhere, the Dow lost 0.56%, while the tech-heavy Nasdaq lost 4.81%.

Heading into today, shares of the motorcycle maker had gained 4.86% over the past month, lagging the Auto-Tires-Trucks sector’s gain of 7.23% and outpacing the S&P 500’s gain of 0.64% in that time.

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, the Zacks Consensus Estimate for revenue is projecting net sales of $643.17 million, up 21.13% from the year-ago period.

Investors might also notice recent changes to analyst estimates for Harley-Davidson. These revisions help to show the ever-changing nature of near-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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 0.64% lower. Harley-Davidson currently has a Zacks Rank of #4 (Sell).

Investors should also note Harley-Davidson’s current valuation metrics, including its Forward P/E ratio of 11.53. This valuation marks a discount compared to its industry’s average Forward P/E of 13.55.

Meanwhile, HOG’s PEG ratio is currently 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 1.05 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 91, putting it in the top 36% 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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