Harley-Davidson Inc. (HOG) stock gained 1.98% in the most recent closing session to close at $40.75. Despite a trading volume of 1.84 million shares below the average daily volume of 2.42 million shares during the past 50 days, HOG stock continued to perform well. Shares of Harley-Davidson Inc. have gained 11.95% in the last five days; however, they have gained 16.03% over the previous month. It has gained 11.04% over the last three months and 11.04% so far this year. Furthermore, the HOG stock ‘s shares are currently trading at a P/E ratio of 10187.50. Moreover, its price-to-cash-flow ratio is 6.41, and its price-to-sales ratio is 1.55. Does this positive dynamic coincide with the brand’s business state, which is undergoing a tough time?
In times of crisis, Harley-Davidson is making a new company strategy to make it more competitive. Younger generations tend to buy motorcycles less often than their older counterparts. Although most Harley-Davidson riders are over 40, this trend is not suitable for the HOG stock. Brand cultures that have sustained sales for many years may have vanished.
With electric motorcycles, Harley-Davidson Inc. (HOG) hopes to revitalize its long-term prospects. Sales of LiveWire, the HOG stock ‘s first model, started poorly last year — so badly that the CEO resigned. Due to a relatively low range on a single charge and high price, sales growth was impossible.
There is no other solution yet, so that the new LiveWire will be released in 2021. It will be mildly upgraded but heavier. This is likely to be due to the rise in electric vehicles’ range, an essential parameter a customer is looking for. However, this may not have a substantial effect on sales growth.
In the last year, the fastest-growing product sales were personal mobility products. Consequently, Grand View Research estimates a $ 20 billion electric scooter market in 2020 that will grow to $ 42 billion in 2030. According to Research And Markets, the global motorcycle market will decline by an average of 1.5% per year during this period to $77.3 billion in 2030.
Now, when it comes to motorcycle sales, Asian countries are mainly influenced by the very cheap segment of small motorcycles.
In the last few years, Harley-Davidson Inc. (HOG) has begun taking steps on the path to becoming a legend in the motorcycle industry, but none of these steps has yet succeeded in creating a new legend. The rise in HOG stock is understood to be due to investors backing their favorite brand.