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Harley-Davidson (HOG) Gains But Lags Market: What You Should Know

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Harley-Davidson (HOG - Free Report) closed at $31.69 in the latest trading session, marking a +0.51% move from the prior day. This change lagged the S&P 500's 0.95% gain on the day. Elsewhere, the Dow gained 0.64%, while the tech-heavy Nasdaq added 0.15%.

Prior to today's trading, shares of the motorcycle maker had lost 6.19% over the past month. This has lagged the Auto-Tires-Trucks sector's gain of 3.29% and the S&P 500's loss of 3.49% in that time.

Wall Street will be looking for positivity from Harley-Davidson as it approaches its next earnings report date. On that day, Harley-Davidson is projected to report earnings of $1.28 per share, which would represent a year-over-year decline of 3.76%. Our most recent consensus estimate is calling for quarterly revenue of $1.31 billion, down 1.3% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.18 per share and revenue of $4.86 billion, which would represent changes of -0.24% and +6.95%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Harley-Davidson. These recent revisions tend to reflect the evolving nature of short-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. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.48% lower. Harley-Davidson is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Harley-Davidson is currently trading at a Forward P/E ratio of 7.54. This valuation marks a discount compared to its industry's average Forward P/E of 10.89.

It is also worth noting that HOG currently has a PEG ratio of 0.85. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Automotive - Domestic was holding an average PEG ratio of 1.01 at yesterday's closing price.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 153, which puts it in the bottom 40% 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.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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