$34.50
arrow_drop_up2.86%Is HOG a Buy or Sell based on AI Analysis?
Fundamental Analysis
Harley-Davidson (HOG) has a market cap of $4.67B, indicating the company's size and value in the stock market. With a price-to-earnings (P/E) ratio of 7.26, it suggests that investors are willing to pay $7.26 for every $1 of earnings, highlighting the company's attractiveness in terms of stock valuation. Furthermore, the stock has a dividend yield of 2.17%, providing income for investors while also reflecting the company's financial stability and profitability. The company's return on equity (ROE) of 20.14% showcases its ability to generate profits from shareholders' equity efficiently, indicating strong financial management and performance. Additionally, the company's revenue growth of 1.41% signifies its ability to generate consistent sales growth, which is crucial for long-term sustainability and profitability. Harley-Davidson's operating margin of 15.87% demonstrates the company's efficiency in managing its operations and generating profits. A healthy operating margin indicates that the company is able to control costs effectively while generating revenue, resulting in sustainable profitability. Furthermore, the company's debt-to-equity ratio of 2.2 suggests that it relies moderately on debt to finance its operations, which can be a sign of financial stability. The company's free cash flow margin of 9.38% reflects its ability to generate cash after accounting for operating expenses and capital expenditures, which is essential for reinvesting in the business and rewarding shareholders. Overall, these fundamental indicators show that Harley-Davidson has a solid financial foundation and efficient operations, making it an attractive investment opportunity for investors looking for a stable and profitable company in the consumer cyclical sector.
Positive Development
Despite facing challenges, Harley-Davidson has maintained a consistent revenue stream, with a 26% revenue drop being a minor setback. The company has been able to maintain a healthy gross margin, indicating effective cost management. The company has a strong cash ratio, indicating a strong financial position.
Negative Development
The company's revenue forecast for 2024 has been lowered due to inflation and high borrowing costs. The company's stock price has been steadily decreasing over the past weeks, indicating investor concerns. The company's net debt to total capital and total debt to equity ratios are high, suggesting a potential financial burden.
Technical Analysis
The Technical Analysis for Harley-Davidson (HOG) indicates a mix of buy, hold, and sell indicators for the stock. The Technical Buy indicators for the month include ATR and STOCHRSI, highlighting potential buying opportunities for investors. On the other hand, there are five Technical Hold indicators such as RSI, MACD, CCI, ADX, and WILLR, suggesting a cautious approach towards the stock. Additionally, there is one Technical Sell indicator, ROC, signaling a potential downside in the stock price. The company's stock sector, Consumer Cyclical, has shown a significant change of 36.47% over the past year, outperforming the stock market sector, which has seen a change of 47.57% in the same period. Furthermore, the Technical Analysis also reveals that Harley-Davidson has a Technical Trendline showing an upward slope, indicating a positive trend for the stock price. The longest Trendline, which started on July 2nd, predicts a forecast price of $33.78 by November 7th, with a forecasted increase from the initial price of $31.65. This suggests a bullish trend for the stock in the coming days. Additionally, the stock has displayed resistance levels at $33.22, with both the longest and closest resistance prices experiencing a 1.96% price change. These technical indicators provide valuable insights for investors looking to make informed decisions on Harley-Davidson stock.
Conclusion and recommendation
Based on the data provided, it is clear that Harley-Davidson (HOG) is a well-established company in the Consumer Cyclical sector with a strong market presence. While the stock price has shown some fluctuation in the short term, the company has maintained a steady performance with a positive return on equity of 20.14% and a dividend yield of 2.17%. The company's historical dividend yield average of 1.77% indicates a consistent payout to shareholders over time. Additionally, Harley-Davidson's low debt-to-equity ratio of 2.2 suggests a healthy financial standing and indicates the company's ability to manage its financial obligations efficiently. With a solid market growth score of 49 and a neutral analyst recommendation, investors may consider including Harley-Davidson in their portfolio for potential long-term growth. In conclusion, Harley-Davidson presents itself as a stable investment option with a strong market presence and a consistent dividend payout history. The company's financial indicators, such as the low debt-to-equity ratio and positive return on equity, demonstrate its ability to generate value for shareholders. With a neutral analyst recommendation and a sound market growth score, investors may see potential for growth in the long term. It is important for investors to conduct further research and closely monitor market trends to make informed investment decisions regarding Harley-Davidson and consider factors such as industry competition and economic conditions that may impact the company's performance.