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Should Value Investors Buy Polaris Inc (PII) Stock?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

Polaris Inc (PII - Free Report) is a stock many investors are watching right now. PII is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. PII has a P/S ratio of 1.04. This compares to its industry's average P/S of 1.13.

Finally, we should also recognize that PII has a P/CF ratio of 9.77. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. PII's current P/CF looks attractive when compared to its industry's average P/CF of 21.99. Over the past 52 weeks, PII's P/CF has been as high as 12.36 and as low as 4.69, with a median of 9.53.

These are only a few of the key metrics included in Polaris Inc's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, PII looks like an impressive value stock at the moment.


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