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Is HarleyDavidson (HOG) Stock Undervalued 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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is HarleyDavidson (HOG - Free Report) . HOG is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 9.52, while its industry has an average P/E of 21.18. Over the past year, HOG's Forward P/E has been as high as 12.66 and as low as 6.91, with a median of 8.73.
HOG is also sporting a PEG ratio of 1.03. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. HOG's industry has an average PEG of 1.18 right now. Over the past 52 weeks, HOG's PEG has been as high as 1.14 and as low as 0.18, with a median of 0.84.
Another notable valuation metric for HOG is its P/B ratio of 2.34. 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. HOG's current P/B looks attractive when compared to its industry's average P/B of 2.86. HOG's P/B has been as high as 2.61 and as low as 1.74, with a median of 2.21, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. HOG has a P/S ratio of 1.21. This compares to its industry's average P/S of 2.82.
Finally, our model also underscores that HOG has a P/CF ratio of 6.77. 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. HOG's current P/CF looks attractive when compared to its industry's average P/CF of 9.96. Over the past year, HOG's P/CF has been as high as 7.35 and as low as 5.18, with a median of 6.41.
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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Is HarleyDavidson (HOG) Stock Undervalued 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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is HarleyDavidson (HOG - Free Report) . HOG is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 9.52, while its industry has an average P/E of 21.18. Over the past year, HOG's Forward P/E has been as high as 12.66 and as low as 6.91, with a median of 8.73.
HOG is also sporting a PEG ratio of 1.03. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. HOG's industry has an average PEG of 1.18 right now. Over the past 52 weeks, HOG's PEG has been as high as 1.14 and as low as 0.18, with a median of 0.84.
Another notable valuation metric for HOG is its P/B ratio of 2.34. 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. HOG's current P/B looks attractive when compared to its industry's average P/B of 2.86. HOG's P/B has been as high as 2.61 and as low as 1.74, with a median of 2.21, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. HOG has a P/S ratio of 1.21. This compares to its industry's average P/S of 2.82.
Finally, our model also underscores that HOG has a P/CF ratio of 6.77. 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. HOG's current P/CF looks attractive when compared to its industry's average P/CF of 9.96. Over the past year, HOG's P/CF has been as high as 7.35 and as low as 5.18, with a median of 6.41.
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.