Harley-Davidson Inc (HOG): Today's Featured Automotive Laggard

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 Automotive industry lower today making it today's featured Automotive laggard. The industry as a whole closed the day down 0.4%. By the end of trading, Harley-Davidson fell 61 cents (-1.3%) to $47.27 on light volume. Throughout the day, 690,521 shares of Harley-Davidson exchanged hands as compared to its average daily volume of two million shares. The stock ranged in price between $47.21-$47.79 after having opened the day at $47.61 as compared to the previous trading day's close of $47.88. Other companies within the Automotive industry that declined today were: Quantum Fuel Systems Technologies Worldwide ( QTWW), down 5.2%, Shiloh Industries ( SHLO), down 5.1%, Orbital Corporation ( OBT), down 4.8%, and Spartan Motors ( SPAR), down 4.5%.
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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 $10.84 billion and is part of the consumer goods sector. The company has a P/E ratio of 18.1, above the S&P 500 P/E ratio of 17.7. Shares are up 23.2% year to date as of the close of trading on Thursday. 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.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the automotive industry could consider Consumer Discretionary Sel Sec SPDR ( XLY) while those bearish on the automotive industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

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