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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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 to watch right now is HarleyDavidson (HOG - Free Report) . HOG is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Another valuation metric that we should highlight is HOG's P/B ratio of 2.19. 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 5.94. Within the past 52 weeks, HOG's P/B has been as high as 4.03 and as low as 2.01, with a median of 2.52.
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 1.08. This compares to its industry's average P/S of 1.15.
Finally, investors should note that HOG has a P/CF ratio of 6.16. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. HOG's P/CF compares to its industry's average P/CF of 15.12. Within the past 12 months, HOG's P/CF has been as high as 17.42 and as low as 5.66, with a median of 7.37.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 to watch right now is HarleyDavidson (HOG - Free Report) . HOG is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Another valuation metric that we should highlight is HOG's P/B ratio of 2.19. 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 5.94. Within the past 52 weeks, HOG's P/B has been as high as 4.03 and as low as 2.01, with a median of 2.52.
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 1.08. This compares to its industry's average P/S of 1.15.
Finally, investors should note that HOG has a P/CF ratio of 6.16. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. HOG's P/CF compares to its industry's average P/CF of 15.12. Within the past 12 months, HOG's P/CF has been as high as 17.42 and as low as 5.66, with a median of 7.37.
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.