Is Harley-Davidson (HOG) a Great Value Stock Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Neverthe...
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Harley-Davidson (HOG). HOG is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 12.04, while its industry has an average P/E of 33.46. Over the last 12 months, HOG's Forward P/E has been as high as 18.95 and as low as 11.16, with a median of 14.70.
We should also highlight that HOG has a P/B ratio of 2.78. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 7.84. HOG's P/B has been as high as 4.03 and as low as 2.13, with a median of 3.18, over the past year.
Finally, investors will want to recognize that HOG has a P/CF ratio of 8.14. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 21.64. HOG's P/CF has been as high as 23.94 and as low as 8.03, with a median of 14.67, all within the past year.
These are only a few of the key metrics included in Harley-Davidson's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, HOG looks like an impressive value stock at the moment.
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HarleyDavidson, Inc. (HOG): Free Stock Analysis Report
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