Harvey Norman (ASX:HVN) Stocks May Be Worth Considering

While Harvey Norman Holdings (HNV) earnings fell in fiscal 2022 due to COVID-19 restrictions, the retailer ended the period on solid footing.

The company’s most recent financial statements provided a strong balance sheet and good cash flow. As the impacts of the pandemic continue to ease, Harvey Norman has an opportunity to recoup lost store sales.

Harvey Norman is a multinational retailer that sells a wide range of products, in categories such as furniture, electronics, bedding and kitchen appliances. The COVID-19 pandemic caused Harvey Norman shares to fall sharply, but insights from TipRanks show the stock has a much brighter outlook.

Extension of the Harvey Norman store network

Harvey Norman’s business model allows it to directly operate some of its branded stores, while other outlets are operated through franchise agreements. The retailer’s main brands are Domayne, Joyce Mayne and Harvey Norman.

Harvey Norman plans to open more stores domestically and overseas. Internationally, the company plans to launch directly operated stores in Malaysia, Croatia and New Zealand. The retailer also continues to advance its omnichannel strategy.

Is Harvey Norman stock a good investment?

Shares of the retailer are down about 15% over the past year. However, the future looks brighter. According to TipRanks analyst rating consensus, HVN stock is a moderate buy based on four buys, two holds and one sell. Harvey Norman’s average price target of $4.26 implies that the stock is fully valued at current levels.

Harvey Norman earns a “Perfect 10” from TipRanks’ Smart Score rating system, indicating the stock has strong potential to outperform market expectations.

The Harvey Norman stock receives favorable mentions on financial blogs. Data from TipRanks shows that financial bloggers’ views are 100% bullish on HVN, compared to an industry average of 65%.

Final Thoughts

The future looks bright for Harvey Norman, with the strengthening of its balance sheet fueling expansion plans and the easing of pandemic restrictions removing key trade barriers. Additionally, Harvey Norman’s digital sales enhancement strategy is also encouraging.

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