Harley-Davidson Inc (HOG): Today's Featured Automotive 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 Automotive industry higher today making it today's featured automotive winner. The industry as a whole closed the day up 0.5%. By the end of trading, Harley-Davidson rose 68 cents (1.3%) to $51.33 on average volume. Throughout the day, two million shares of Harley-Davidson exchanged hands as compared to its average daily volume of 1.6 million shares. The stock ranged in a price between $50.05-$51.36 after having opened the day at $51.02 as compared to the previous trading day's close of $50.65. Other companies within the Automotive industry that increased today were: Delphi Automotive ( DLPH), up 4.2%, Toyota Motor ( TM), up 3.1%, Winnebago Industries ( WGO), up 2.5%, and Meritor ( MTOR), up 2.3%.
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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 $11.59 billion and is part of the consumer goods sector. The company has a P/E ratio of 18.8, above the S&P 500 P/E ratio of 17.7. Shares are up 4.9% year to date as of the close of trading on Monday. Currently there are 12 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 buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, notable return on equity, good cash flow from operations, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

On the negative front, Motorcar Parts of America ( MPAA), down 3.8%, Arctic Cat ( ACAT), down 2.8%, SORL Auto Parts ( SORL), down 2.4%, and China Zenix Auto International Ltd ADR ( ZX), down 2.3%, were all laggards within the automotive industry with Navistar International ( NAV) being today's automotive industry laggard.

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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