Story Stocks^®

Harley-Davidson is an under-the-radar name that could benefit meaningfully from a Fed rate cut, expected at Wednesday's FOMC meeting. As a maker of premium, highly discretionary motorcycles, HOG stands to gain from lower financing costs that could entice buyers back into the showroom.

• Motorcycles are big-ticket items, and demand is sensitive to interest rates — making HOG a lesser-discussed but clear beneficiary of easier monetary policy.
• Beyond the macro angle, HOG has joined our YIELD Leaders rankings, thanks to a strong shareholder yield of 10.3% (8.0% buyback yield + 2.3% dividend yield), placing it in the top 10 of our report.

HOG has had a tough stretch: Q2 revenue: $1.31 bln, down 19% yr/yr due to planned shipment cuts and soft demand. That marked the fourth straight quarter of double-digit revenue declines, with Q3 also expected to be down, though less sharply.

But there are reasons to take a fresh look:

• Financial overhaul: HOG just sold residual interests in securitized loans and entered a five-year financing partnership with KKR and PIMCO. These firms will buy ~two-thirds of future HDFS retail loan originations annually at a premium. The deal will generate substantial cash, allowing HOG to pay down ~$450 mln in debt and ramp up its $1.0 bln buyback — with $500 mln (~14% of shares) targeted in 2H25.
• Leadership is also getting a refresh: New CEO Artie Starrs (formerly of Topgolf Callaway) takes the reins Oct. 1, signaling potential strategic change.

Briefing.com Analyst Insight:

HOG is more than just bikes — it's a global lifestyle brand, with revenue from parts, apparel, and financial services. Lower rates, a de-risked financing arm, an aggressive buyback plan, and a new CEO all position the company for a potential turnaround. With a shareholder yield north of 10%, HOG is a compelling name to watch if the Fed begins cutting.