When Should You Buy Harley-Davidson, Inc. (NYSE:HOG)?

Harley-Davidson, Inc. (NYSE:HOG), which is in the auto business, and is based in United States, received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to $45.65 at one point, and dropping to the lows of $31.91. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Harley-Davidson’s current trading price of $31.91 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Harley-Davidson’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

View our latest analysis for Harley-Davidson

Is Harley-Davidson still cheap?

Great news for investors – Harley-Davidson is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is $46.9, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. However, given that Harley-Davidson’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

What does the future of Harley-Davidson look like?

NYSE:HOG Future Profit December 25th 18
NYSE:HOG Future Profit December 25th 18
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. However, with a relatively muted profit growth of 9.5% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Harley-Davidson, at least in the short term.

What this means for you:

Are you a shareholder? Even though growth is relatively muted, since HOG is currently undervalued, it may be a great time to increase your holdings in the stock. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on HOG for a while, now might be the time to make a leap. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy HOG. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed investment decision.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Harley-Davidson. You can find everything you need to know about Harley-Davidson in the latest infographic research report. If you are no longer interested in Harley-Davidson, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.