Harley-Davidson, Inc. HOG is entering the race to acquire Italian motorcycle manufacturer Ducati, according to Reuters. If the $1.67 billion deal materializes, it will bring together the prestigious European high-performance bike maker with the Milwaukee, WI-based designer and manufacturer of heavyweight motorcycles and related products and merchandise.

Importantly, Ducati, which was introduced in 1926, was put up for sale by the Germany-based Volkswagen AG VLKAY, which controls Ducati through its Audi division. Notably, the German automaker is in talks with investment boutique Evercore on the sale prospects, which it feels can repair its image tarnished by the emissions scandal.

Per the news, Indian motorcycle company, Bajaj Auto, and other buyout funds are also in the contention for the takeover bid of Ducati. For Harley, entering into this race is in sync with its strategy to expand ridership, raise its international business and launch 100 new motorcycles.

Harley-Davidson has underperformed the Zacks categorized Automotive - Domestic industry in the last three months. The company’s share price has decreased 6.6%, while the industry has gained 8.5%.

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Currently, Harley-Davidson carries a Zacks Rank #4 (Sell), whereas Volkswagen holds a Zacks Rank #2 (Buy).

You can see  the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Other favorable stocks in the auto space include Fox Factory Holding Corp FOXF and General Motors Company GM, each sporting a Zacks Rank #2 (Buy).

Expected long-term growth rate for Fox Factory Holding and General Motors are 15.6% and 9.2% respectively.

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