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 up 0.4%. By the end of trading, Harley-Davidson rose 72 cents (1.3%) to $54.43 on average volume. Throughout the day, 1.5 million shares of Harley-Davidson exchanged hands as compared to its average daily volume of 1.7 million shares. The stock ranged in a price between $53.87-$54.45 after having opened the day at $54.30 as compared to the previous trading day's close of $53.71. Other companies within the Consumer Goods sector that increased today were: Navistar International ( NAV), up 27.8%, Agria Corporation ( GRO), up 22.7%, Smithfield Foods ( SFD), up 10.7%, and Crumbs Bake Shop ( CRMB), up 10%.
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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 $12.08 billion and is part of the automotive industry. The company has a P/E ratio of 19.6, above the S&P 500 P/E ratio of 17.7. Shares are up 10% year to date as of the close of trading on Wednesday. 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, expanding profit margins, good cash flow from operations and solid stock price performance. 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, China New Borun Corporation ( BORN), down 10.4%, Blount International ( BLT), down 10%, Chromcraft Revington ( CRC), down 8.6%, and Central European Distribution ( CEDC), down 6.4%, were all laggards within the consumer goods sector with Monster Beverage ( MNST) 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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