Why Harley-Davidson Stock, is up nearly 3% year to date, outperforming the S&P Automotive Index, which is down roughly 22% during the same time period. 바카라사이트
Harley, like most automakers, has been hampered by a slew of external variables, including component shortages, rising inflation, and fears about the global economy.
However, there are a few characteristics that have helped the stock outperform other major automakers.
For starters, Harley-recent Davidson’s financial performance has been better than predicted.
Despite the fact that the company halted all vehicle production and dispatches for about two weeks in
May due to a semiconductor shortage, revenue declined by about 4% year on year to $1.47 billion, while net income increased by 5% to $216 million.
Furthermore, while investors expected the firm to lower its full-year outlook
The company instead reiterated guidance estimating motorcycle revenue growth of 5% to 10% for the whole year, with an operating income margin of 11% to 12%.
Why Harley-Davidson Stock, most certainly given investors some confidence in the company’s ability to execute in the current climate
As it concentrates more on premium motorcycles and expands its margin-accretive operations.
There are growing fears that the United States will face a recession as GDP has fallen for the last two quarters in a row, with consumer spending also remaining poor.
However, investors believe that Harley-business Davidson’s will fare better than the overall automobile market in the event of a slump.
Demand for Harley-Davidson motorcycles has been outstripping supply, with the company’s shipments in the second quarter decreasing by nearly 15% compared to. 카지노사이트
The previous quarter due to supply chain difficulties. At the same time, demand for used Harley-Davidson motorcycles has been robust, with
Used car prices only marginally lower than new vehicle costs. This could indicate that the company will see relatively consistent demand even in a difficult macro climate.
Harley-valuation Davidson’s appears to be extremely tempting at current prices of around $39 per share, given that it trades at only roughly 8.5x consensus 2022 earnings.
Furthermore, despite the company’s flat to negative growth over the last several years, we anticipate sales growth of roughly 6% in 2022 and 7% in 2023.
Although not large, Harley’s dividend yield of roughly 1.5% is well covered by the company’s financials, which may make the stock more appealing in the rising interest rate environment.
We value HOG stock at around $54 per share, which is around 40% more than the current market price.
For further information, see our analysis Harley-Davidson Valuation: Expensive or Cheap.
Check out our Harley-Davidson Revenue Analysis for more information on the company’s primary revenue streams and how they are trending.
What if you prefer a more balanced portfolio? Since the end of 2016, our high-quality and multi-strategy portfolios have regularly outperformed the market. 카지노 블로그