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

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Harley-Davidson ( HOG) pushed the Automotive industry lower today making it today's featured Automotive laggard. The industry as a whole closed the day up 0.8%. By the end of trading, Harley-Davidson fell $0.79 (-1.3%) to $57.98 on light volume. Throughout the day, 953,843 shares of Harley-Davidson exchanged hands as compared to its average daily volume of 1,369,800 shares. The stock ranged in price between $57.73-$58.79 after having opened the day at $58.47 as compared to the previous trading day's close of $58.77. Other companies within the Automotive industry that declined today were: China Zenix Auto International ( ZX), down 8.0%, Patrick Industries ( PATK), down 4.5%, Tesla Motors ( TSLA), down 3.7% and Fox Factory ( FOXF), down 2.3%.

Harley-Davidson, Inc. manufactures heavyweight cruiser and touring motorcycles. The company operates through two segments: the Motorcycles segment and the Financial Services segment. Harley-Davidson has a market cap of $13.3 billion and is part of the consumer goods sector. Shares are up 20.4% year to date as of the close of trading on Friday. Currently there are 11 analysts that rate Harley-Davidson a buy, no analysts rate it a sell, and 3 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 revenue growth, notable return on equity, expanding profit margins, good cash flow from operations and growth in earnings per share. 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 positive front, SORL Auto Parts ( SORL), up 6.7%, Quantum Fuel Systems Technologies Worldwide ( QTWW), up 6.4%, China Automotive Systems ( CAAS), up 6.3% and Motorcar Parts of America ( MPAA), up 4.4% , were all gainers within the automotive industry with BorgWarner ( BWA) being today's featured automotive industry leader.

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).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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