What Happened:

Shares of american motorcycle manufacturing company Harley-Davidson (NYSE:HOG) fell 14.3% in the morning session after the company reported first-quarter results with operating profits falling below Wall Street's estimates. Looking closely, both gross and operating margins in the core segment that sells motorcycles and parts declined meaningfully year over year. Overall, the results could have been better.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Harley-Davidson? Access our full analysis report here, it's free.

What is the market telling us:

Harley-Davidson's shares are quite volatile and over the last year have had 7 moves greater than 5%. But moves this big are very rare even for Harley-Davidson and that is indicating to us that this news had a significant impact on the market's perception of the business.

Harley-Davidson is down 6.7% since the beginning of the year, and at $33.79 per share it is trading 23.1% below its 52-week high of $43.94 from March 2024. Investors who bought $1,000 worth of Harley-Davidson's shares 5 years ago would now be looking at an investment worth $927.92.

When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.