Harley-Davidson (HOG) Showing Signs Of Perilous Reversal Today
Trade-Ideas LLC identified
(
) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Harley-Davidson as such a stock due to the following factors:
- HOG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $223.8 million.
- HOG has traded 272,179 shares today.
- HOG is down 8.6% today.
- HOG was up 19.8% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in HOG with the Ticky from Trade-Ideas. See the FREE profile for HOG NOW at Trade-Ideas
More details on HOG:
Harley-Davidson, Inc. primarily manufactures cruiser and touring motorcycles. The company operates through two segments, Motorcycles & Related Products, and Financial Services. The stock currently has a dividend yield of 3.2%. HOG has a PE ratio of 12. Currently there are 5 analysts that rate Harley-Davidson a buy, 1 analyst rates it a sell, and 13 rate it a hold.
The average volume for Harley-Davidson has been 2.9 million shares per day over the past 30 days. Harley-Davidson has a market cap of $8.0 billion and is part of the consumer goods sector and automotive industry. The stock has a beta of 0.99 and a short float of 16.1% with 6.49 days to cover. Shares are down 0.2% year-to-date as of the close of trading on Thursday.
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.
Analysis:
rates Harley-Davidson as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and weak operating cash flow.
Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 10.6%. Since the same quarter one year prior, revenues slightly increased by 4.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Automobiles industry and the overall market, HARLEY-DAVIDSON INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- HARLEY-DAVIDSON INC has improved earnings per share by 7.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, HARLEY-DAVIDSON INC reported lower earnings of $3.62 versus $3.87 in the prior year. This year, the market expects an improvement in earnings ($3.99 versus $3.62).
- Net operating cash flow has significantly decreased to $41.13 million or 76.45% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- HOG has underperformed the S&P 500 Index, declining 19.61% from its price level of one year ago. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
- You can view the full Harley-Davidson Ratings Report.
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.