Stock of the Month May 2014: Harley Davidson Inc. (HOG)

My stock of the month for May is the big name motorcycle distributor, Harley Davidson Inc. (HOG).

Within the last few months and mostly throughout the winter weather, Harley Davidson hasn’t exactly been performing as well as it was expected to. However, despite the low performance, experts have still considered this stock to be an extremely strong buy.

Starting from the beginning of last week, the stock price jumped from 67.54 per share to 72.56. At first, I thought that this was just a momentary jump and that it was only a matter of time before the share price would drop again. To my surprise, the stock price has held its momentum. In fact, it is still seeing some positive growth.

Seasonal Investing Strategy

After spending some time analyzing this stock, it is evident that Harley Davidson performs better in the spring and summer season. The most obvious reason for this anomaly is that the consumers have very little interest in purchasing a bike when the weather is cold.

The sale of the bikes is what will determine whether this stock will perform or under-perform. As a result, since business in the fall or winter seasons isn’t exactly at its highest, it is quite normal for the stock price to drop.

Taking this into consideration, the best move would be to purchase the Harley Davidson in the beginning of spring and to sell when the weather is about to get cold. This is what I plan to do every year.

Long Term Growth

If seasonal investing isn’t quite your thing, holding your Harley Davidson stock for long term growth is also another viable option.

Harley Davidson is a well-established company which seems to outperform many of its motorcycle rivals. I see definite growth within this company and would not hesitate to purchase more stocks.

Despite the harsh winter every year, Harley Davidson will recover when spring comes around. Plus, I see this stock reaching its all-time high in 2014 since its record of 74.93 in 2006.

Investing in 2014

Sadly, the discount purchase for this stock has already passed. I estimate that the Harley Davidson stock price is currently at its highest for the year. In fact, it has already returned a strong 8% in its spring transition this year.

If you would like to catch the increase for spring 2015, be sure to check this stock consistently in the winter months. You will be more than likely to get a good bargain!