Yahoo Finance Here's Why Harley-Davidson (HOG) is a Strong Value Stock
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.
Why Investors Should Pay Attention to This Value Stock
Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.
Harley-Davidson (HOG)
Milwaukee, WI-based Harley-Davidson, Inc. is one of the leading motorcycle makers of the world. It is the parent entity of company groups doing business as Harley-Davidson Motor Company (HDMC) and Harley-Davidson Financial Services (HDFS). The two reportable segments of the company are:
HOG is a Zacks Rank #2 (Buy) stock, with a Value Style Score of A and VGM Score of A. Shares are currently trading at a forward P/E of 9.5X for the current fiscal year compared to the Automotive - Domestic industry's P/E of 11.7X. Additionally, HOG has a PEG Ratio of 1 and a Price/Cash Flow ratio of 7.6X. Value investors should also note HOG's Price/Sales ratio of 1.2X.
Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2022. The Zacks Consensus Estimate has increased $0.01 to $4.72 per share. HOG has an average earnings surprise of 43.2%.
HOG should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.
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Harley-Davidson, Inc. (HOG) : Free Stock Analysis Report
