Harley-Davidson (HOG) Moves Higher Following Positive Mention

Harley-Davidson (NYSE: HOG) shares are indicated higher Monday following a positive Barron's mention last weekend.

According to the report, Harley-Davidson could still see near-term choppiness, but long-term investors should fare well. While the company is aiming to tap more a younger generation of buyers, it could still see upside as many baby boomers (the key demographic for HOG) are living longer, more active lifestyles.

Two reasons why gains should hold are that Harley-Davidson is a household name and that the company's old CEO, Keith Wandell, made an effort to slash costs which is beginning to pay off.

Harley-Davidson also recently doubled its buyback program and generates about 8 percent of its market cap in free cash each year.

Looking at the next two-years of performance, the minimum expectation by Wall Street analysts is for Harley-Davidson to reach EPS of $4.69 by 2017 and the average is around $5. HOG shares also trade at a 20 percent discount to the S&P 500, versus historical levels of a 20 percent premium.

Shares of Harley-Davidson are up over 1 percent in early trading.

You May Also Be Interested In

• First Advantage to join S&P SmallCap 600, replacing Kennedy-Wilson
• Barclays studies how the S&P 500 reacts when easing cycles reverse
• S&P Global Energy launches UN Global Compact screening dataset