GO
Loading...

Harley-Davidson: A Discretionary Spending Play

We’ve seen a huge rebound in discretionary spending, Cramer said Wednesday. He thinks one way to profit from the trend is by buying Harley-Davidson.

“This business is back, demand is rebounding—some would say its booming—and the Harley-Davidson of today is a much better company than the Harley of five or six years ago,” he said.

Harley Davidson recently reported a 7 cent earnings beat off a 22 cent basis, with a larger-than-expected 11.9 percent increase in revenues. Retail sales are also accelerating and Harley has significantly increased market share with young adults, women, Hispanics and African-Americans.

HOG began a major restructuring in 2009 and is now a “leaner, meaner, more profitable motorcycle-making machine,” Cramer said. Manufacturing costs have been cut and the inventories are relatively low.

“Harley-Davidson is primed to kick-start your portfolio with its dominant market share, successful restructuring, and surging sales,” Cramer said. He thinks it could run to at least $60 before it gets too expensive.

Cramer's Other 'Ultra Discretionary' Plays:

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com

Symbol
Price
 
Change
%Change
HOG
---

Contact Mad Money

  • Showtimes

    U.S.
    Monday - Friday 6p ET
    Australia
    Saturday 8a, 1p, 7p SYD
    Sunday 12a, 1a, 8a, 7p SYD
    New Zealand
    Saturday 10a, 3p, 9p NZ
    Sunday 2a, 3a, 10a, 9p NZ
  • Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

Mad Money Features

  • Grab the latest CNBC gear from the NBCUniversal Store!

  • Get a behind-the-scenes look at how Cramer formulates his investment advice. "Inside the Madness" is a column, which features e-mails and more with Cramer and his researcher Nicole Urken.

  • You’ve always wanted to hit the “Hallelujah!” button. Here’s your chance.