Will Harley-Davidson Stock Return To Pre-Inflation Shock Highs?

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.

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 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.