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Should Value Investors Buy HarleyDavidson (HOG) Stock?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
HarleyDavidson (HOG - Free Report) is a stock many investors are watching right now. HOG is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. HOG has a P/S ratio of 1.08. This compares to its industry's average P/S of 2.73.
Finally, we should also recognize that HOG has a P/CF ratio of 6.27. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. HOG's current P/CF looks attractive when compared to its industry's average P/CF of 19.65. Over the past 52 weeks, HOG's P/CF has been as high as 8.62 and as low as 5.21, with a median of 6.84.
Another great Automotive - Domestic stock you could consider is PACCAR (PCAR - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Shares of PACCAR currently holds a Forward P/E ratio of 11.62, and its PEG ratio is 1.16. In comparison, its industry sports average P/E and PEG ratios of 43.15 and 3.33.
Over the last 12 months, PCAR's P/E has been as high as 18.10, as low as 10.39, with a median of 12.66, and its PEG ratio has been as high as 1.81, as low as 1.04, with a median of 1.27.
Additionally, PACCAR has a P/B ratio of 2.54 while its industry's price-to-book ratio sits at 6.44. For PCAR, this valuation metric has been as high as 2.93, as low as 2.20, with a median of 2.56 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that HarleyDavidson and PACCAR are likely undervalued currently. And when considering the strength of its earnings outlook, HOG and PCAR sticks out as one of the market's strongest value stocks.
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Should Value Investors Buy HarleyDavidson (HOG) Stock?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
HarleyDavidson (HOG - Free Report) is a stock many investors are watching right now. HOG is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. HOG has a P/S ratio of 1.08. This compares to its industry's average P/S of 2.73.
Finally, we should also recognize that HOG has a P/CF ratio of 6.27. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. HOG's current P/CF looks attractive when compared to its industry's average P/CF of 19.65. Over the past 52 weeks, HOG's P/CF has been as high as 8.62 and as low as 5.21, with a median of 6.84.
Another great Automotive - Domestic stock you could consider is PACCAR (PCAR - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Shares of PACCAR currently holds a Forward P/E ratio of 11.62, and its PEG ratio is 1.16. In comparison, its industry sports average P/E and PEG ratios of 43.15 and 3.33.
Over the last 12 months, PCAR's P/E has been as high as 18.10, as low as 10.39, with a median of 12.66, and its PEG ratio has been as high as 1.81, as low as 1.04, with a median of 1.27.
Additionally, PACCAR has a P/B ratio of 2.54 while its industry's price-to-book ratio sits at 6.44. For PCAR, this valuation metric has been as high as 2.93, as low as 2.20, with a median of 2.56 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that HarleyDavidson and PACCAR are likely undervalued currently. And when considering the strength of its earnings outlook, HOG and PCAR sticks out as one of the market's strongest value stocks.