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Are Investors Undervaluing HarleyDavidson (HOG) Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
One stock to keep an eye on is HarleyDavidson (HOG - Free Report) . HOG is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value.
Investors will also notice that HOG has a PEG ratio of 0.72. 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. HOG's PEG compares to its industry's average PEG of 1.78. Within the past year, HOG's PEG has been as high as 1.14 and as low as 0.18, with a median of 0.73.
Another notable valuation metric for HOG is its P/B ratio of 1.99. The P/B ratio pits a stock's market value against 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 4.57. Over the past year, HOG's P/B has been as high as 2.62 and as low as 1.74, with a median of 2.27.
Finally, our model also underscores that HOG has a P/CF ratio of 5.95. 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 P/CF compares to its industry's average P/CF of 14.47. Over the past year, HOG's P/CF has been as high as 7.75 and as low as 5.21, with a median of 6.53.
Value investors will likely look at more than just these metrics, but the above data helps show that HarleyDavidson is likely undervalued currently. And when considering the strength of its earnings outlook, HOG sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing HarleyDavidson (HOG) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
One stock to keep an eye on is HarleyDavidson (HOG - Free Report) . HOG is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value.
Investors will also notice that HOG has a PEG ratio of 0.72. 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. HOG's PEG compares to its industry's average PEG of 1.78. Within the past year, HOG's PEG has been as high as 1.14 and as low as 0.18, with a median of 0.73.
Another notable valuation metric for HOG is its P/B ratio of 1.99. The P/B ratio pits a stock's market value against 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 4.57. Over the past year, HOG's P/B has been as high as 2.62 and as low as 1.74, with a median of 2.27.
Finally, our model also underscores that HOG has a P/CF ratio of 5.95. 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 P/CF compares to its industry's average P/CF of 14.47. Over the past year, HOG's P/CF has been as high as 7.75 and as low as 5.21, with a median of 6.53.
Value investors will likely look at more than just these metrics, but the above data helps show that HarleyDavidson is likely undervalued currently. And when considering the strength of its earnings outlook, HOG sticks out at as one of the market's strongest value stocks.