{"id":60861,"date":"2023-09-14T08:28:09","date_gmt":"2023-09-14T12:28:09","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/will-harley-davidson-stock-return-to-pre-inflation-shock-highs\/"},"modified":"2023-09-14T08:28:12","modified_gmt":"2023-09-14T12:28:12","slug":"will-harley-davidson-stock-return-to-pre-inflation-shock-highs","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=60861","title":{"rendered":"Will Harley-Davidson Stock Return To Pre-Inflation Shock Highs?"},"content":{"rendered":"
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Harley-Davidson stock currently trades at $33.50 per share, around 36% below its level of $52 seen on May 17, 2021 (pre-inflation shock high), and seems undervalued. Harley saw its stock trading at around $32 at the end of June 2022, just before the Fed started increasing rates, and remains up by roughly 6% from those levels. In comparison, the S&P 500 gained about 18% during this period. Harley stock has benefited from better-than-expected Q2 revenues and easing supply chain issues.<\/p>\n

Notably, HOG stock had a Sharpe Ratio of -0.1 since early 2017, which is lower than the figure of 0.6 for the S&P 500 Index over the same period. Compare this with the Sharpe of 1.2<\/strong> for the Trefis Reinforced Value portfolio. Sharpe is a measure of return per unit of risk, and high-performance portfolios can provide the best of both worlds.<\/p>\n

Returning to the pre-inflation shock level means that Harley stock will have to gain about 55% from here. While it\u2019s possible that the stock may recover to those levels, we estimate Harley Davidson valuation<\/strong> to be around $46 per share, about 37% above the market price. This is because the recent uncertainty in the financial sector has made investors concerned about a potential recession. Harley\u2019s business may see an adverse impact on its volume if the U.S. economy were to go into recession, with customers holding back on discretionary purchases.<\/p>\n

Our detailed analysis of Harley-Davidson upside post-inflation shock<\/strong> captures trends in the company\u2019s stock during the turbulent market conditions seen over 2022 and compares these trends to the stock\u2019s performance during the 2008 recession.<\/p>\n

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2022 Inflation Shock<\/strong><\/p>\n

Timeline of Inflation Shock So Far:<\/p>\n