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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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 HarleyDavidson (HOG - Free Report) . HOG is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 9.53, while its industry has an average P/E of 25.79. Over the past 52 weeks, HOG's Forward P/E has been as high as 12.66 and as low as 6.91, with a median of 8.77.
Investors will also notice that HOG has a PEG ratio of 1.03. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. HOG's industry currently sports an average PEG of 1.73. Over the last 12 months, HOG's PEG has been as high as 1.14 and as low as 0.18, with a median of 0.82.
We should also highlight that HOG has a P/B ratio of 2.32. The P/B ratio is used to compare a stock's market value with 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 3.75. Over the past 12 months, HOG's P/B has been as high as 2.61 and as low as 1.74, with a median of 2.24.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 1.25. This compares to its industry's average P/S of 2.65.
Finally, investors should note that HOG has a P/CF ratio of 6.72. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 12.24. Within the past 12 months, HOG's P/CF has been as high as 7.51 and as low as 5.18, with a median of 6.48.
These are only a few of the key metrics included in HarleyDavidson'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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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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 HarleyDavidson (HOG - Free Report) . HOG is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 9.53, while its industry has an average P/E of 25.79. Over the past 52 weeks, HOG's Forward P/E has been as high as 12.66 and as low as 6.91, with a median of 8.77.
Investors will also notice that HOG has a PEG ratio of 1.03. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. HOG's industry currently sports an average PEG of 1.73. Over the last 12 months, HOG's PEG has been as high as 1.14 and as low as 0.18, with a median of 0.82.
We should also highlight that HOG has a P/B ratio of 2.32. The P/B ratio is used to compare a stock's market value with 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 3.75. Over the past 12 months, HOG's P/B has been as high as 2.61 and as low as 1.74, with a median of 2.24.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 1.25. This compares to its industry's average P/S of 2.65.
Finally, investors should note that HOG has a P/CF ratio of 6.72. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 12.24. Within the past 12 months, HOG's P/CF has been as high as 7.51 and as low as 5.18, with a median of 6.48.
These are only a few of the key metrics included in HarleyDavidson'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.