We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Harley-Davidson (HOG) to Recall Over 57K Touring Motorcycles
Read MoreHide Full Article
Harley-Davidson, Inc. (HOG - Free Report) has announced the voluntary recall of 57,138 Touring motorcycles globally. An oil line clamp may have been inappropriately installed, resulting in the vehicles being recalled.
The defective oil line in the affected vehicles can come loose and spray oil onto the path of the rear tire. A number of such incidents have been reported as per documents filed with the National Highway Traffic Safety Administration. The affected motorcycles are 2017 Touring models built between Jul 2, 2016, and May 9, 2017. These include Electra Glide, Road King, Road Glide and Street Glide models.
The issue has caused some crashes, one resulting in a minor injury. Harley-Davidson is expected to send letters to affected customers from this week. Free repairs are likely to be performed at local dealerships.
Harley-Davidson’s worldwide dealer retail sales of new motorcycles went down 4.3% to 55,049 units in first-quarter 2017 due to weak demand in the U.S. Retail motorcycle sales were adversely affected by higher competitive pressures. Total shipments also declined 14.7% year over year to 70,831 motorcycles in first-quarter 2017. Harley-Davidson continues to expect stiff competition to hurt retail sales this year as competitors rely on discounts and product introductions to boost sales. Furthermore, Harley-Davidson expects headwinds due to macro economic challenges in some regions. It anticipates shipments in 2017 to be relatively constant or slightly lower year over year.
However, the company’s market share in the 601cc-plus motorcycle registrations remains high. Moreover, it is working toward improving its international reach. In first-quarter 2017, the company added seven new dealerships in China, India, Norway, Slovenia, Spain and Thailand. It is also focused on building its product portfolio to increase customer base.
Price Performance
Harley-Davidson underperformed the Zacks categorized Automotive-Domestic industry. The company’s shares lost 7.5% in the last three months compared with the industry’s 1.4% gain.
Zacks Rank & Stocks to Consider
Currently, Harley-Davidson carries a Zacks Rank #3 (Hold).
BorgWarner has an expected long-term growth rate of 8.7%.
Lear has an expected growth rate of around 7.1% over the long term.
GKN has an expected long-term growth rate of 5.3%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look. See the pot trades we're targeting>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Harley-Davidson (HOG) to Recall Over 57K Touring Motorcycles
Harley-Davidson, Inc. (HOG - Free Report) has announced the voluntary recall of 57,138 Touring motorcycles globally. An oil line clamp may have been inappropriately installed, resulting in the vehicles being recalled.
The defective oil line in the affected vehicles can come loose and spray oil onto the path of the rear tire. A number of such incidents have been reported as per documents filed with the National Highway Traffic Safety Administration. The affected motorcycles are 2017 Touring models built between Jul 2, 2016, and May 9, 2017. These include Electra Glide, Road King, Road Glide and Street Glide models.
The issue has caused some crashes, one resulting in a minor injury. Harley-Davidson is expected to send letters to affected customers from this week. Free repairs are likely to be performed at local dealerships.
Harley-Davidson’s worldwide dealer retail sales of new motorcycles went down 4.3% to 55,049 units in first-quarter 2017 due to weak demand in the U.S. Retail motorcycle sales were adversely affected by higher competitive pressures. Total shipments also declined 14.7% year over year to 70,831 motorcycles in first-quarter 2017. Harley-Davidson continues to expect stiff competition to hurt retail sales this year as competitors rely on discounts and product introductions to boost sales. Furthermore, Harley-Davidson expects headwinds due to macro economic challenges in some regions. It anticipates shipments in 2017 to be relatively constant or slightly lower year over year.
However, the company’s market share in the 601cc-plus motorcycle registrations remains high. Moreover, it is working toward improving its international reach. In first-quarter 2017, the company added seven new dealerships in China, India, Norway, Slovenia, Spain and Thailand. It is also focused on building its product portfolio to increase customer base.
Price Performance
Harley-Davidson underperformed the Zacks categorized Automotive-Domestic industry. The company’s shares lost 7.5% in the last three months compared with the industry’s 1.4% gain.
Zacks Rank & Stocks to Consider
Currently, Harley-Davidson carries a Zacks Rank #3 (Hold).
Some better-ranked companies in the auto space include BorgWarner Inc. (BWA - Free Report) , Lear Corporation (LEA - Free Report) and GKN plc . All three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
BorgWarner has an expected long-term growth rate of 8.7%.
Lear has an expected growth rate of around 7.1% over the long term.
GKN has an expected long-term growth rate of 5.3%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look. See the pot trades we're targeting>