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Are Investors Undervaluing HarleyDavidson (HOG) Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 stock to keep an eye on 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 2.32. 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 5.38. 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 2.49.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. 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 1.01. This compares to its industry's average P/S of 1.81.
Finally, our model also underscores that HOG has a P/CF ratio of 6.71. 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 17.24. Over the past 52 weeks, HOG's P/CF has been as high as 17.42 and as low as 5.66, with a median of 7.27.
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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Are Investors Undervaluing HarleyDavidson (HOG) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 stock to keep an eye on 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 2.32. 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 5.38. 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 2.49.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. 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 1.01. This compares to its industry's average P/S of 1.81.
Finally, our model also underscores that HOG has a P/CF ratio of 6.71. 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 17.24. Over the past 52 weeks, HOG's P/CF has been as high as 17.42 and as low as 5.66, with a median of 7.27.
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.