Harley-Davidson Shares Popped: What You Need to Know

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of motorcycle kingpin Harley-Davidson (NYSE: HOG  ) were getting revved up by investors today, gaining as much as 13% in intraday trading on heavier-than-average volume.

So what: It's earnings season, and that means that a lot of stocks will see uncharacteristic volatility as investors react to financial reports. For Harley-Davidson, the reaction was clearly a good one as after earnings from continuing operations jumped from $0.59 per share last year to $0.81 this year. Wall Street analysts were expecting per-share profits of just $0.71. The strong bottom-line performance was driven by an 18% jump in motorcycle sales and a 35% increase in operating income from its financial services segment.

Now what: There's little doubt that Harley-Davidson sputtered a bit during the financial crisis and recession. But the company now appears to be roaring back to life with strongly rebounding sales and profits. The only drawback for investors right now is that for those of us looking at the shiny HOG shares in the window, the shares appear to already be priced for a significant continued rebound. It's hard not to notice, with a forward price-to-earnings ratio of 22.

Want to keep up to date on Harley-Davidson? Add it to your watchlist.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Fool contributor Matt Koppenheffer does not have a financial interest in any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter @KoppTheFool or Facebook. The Fool’s disclosure policy prefers dividends over a sharp stick in the eye.

Read/Post Comments (0) | Recommend This Article (4)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1521346, ~/Articles/ArticleHandler.aspx, 10/25/2016 8:54:26 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,169.27 -53.76 -0.30%
S&P 500 2,143.16 -8.17 -0.38%
NASD 5,283.40 -26.43 -0.50%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/25/2016 4:05 PM
HOG $56.60 Down -0.50 -0.88%
Harley-Davidson CAPS Rating: ***