Harley-Davidson Inc (HOG): Today's Featured Consumer Goods Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Harley-Davidson ( HOG) pushed the Consumer Goods sector higher today making it today's featured consumer goods winner. The sector as a whole closed the day down 0.3%. By the end of trading, Harley-Davidson rose $1.58 (3.3%) to $49.20 on heavy volume. Throughout the day, 3.8 million shares of Harley-Davidson exchanged hands as compared to its average daily volume of 2.1 million shares. The stock ranged in a price between $47.93-$49.25 after having opened the day at $48.05 as compared to the previous trading day's close of $47.62. Other companies within the Consumer Goods sector that increased today were: Crown Crafts ( CRWS), up 9.5%, United-Guardian ( UG), up 9.4%, Joe's Jeans ( JOEZ), up 8%, and Greif ( GEF), up 7.9%.
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Harley-Davidson, Inc. engages in the production and sale of heavyweight motorcycles. It operates in two segments, Motorcycles and Related Products, and Financial Services. Harley-Davidson has a market cap of $10.56 billion and is part of the automotive industry. The company has a P/E ratio of 17.7, equal to the S&P 500 P/E ratio of 17.7. Shares are up 20% year to date as of the close of trading on Tuesday. Currently there are 11 analysts that rate Harley-Davidson a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates Harley-Davidson as a hold. The company's strengths can be seen in multiple areas, such as its notable return on equity, expanding profit margins and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, premium valuation and weak operating cash flow.

On the negative front, ATC Venture Group ( ATC), down 18.7%, Central Garden & Pet Company ( CENTA), down 15.6%, Central Garden & Pet Company ( CENT), down 13.6%, and Global-Tech Advanced Innovations ( GAI), down 10.6%, were all laggards within the consumer goods sector with VF Corporation ( VFC) being today's consumer goods sector laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the consumer goods sector could consider iShares Dow Jones US Cons Goods ( IYK) while those bearish on the consumer goods sector could consider ProShares Ultra Sht Consumer Goods ( SZK).

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