Back to top

Image: Bigstock

Is Polaris Inc (PII) a Great Value Stock Right Now?

Read MoreHide Full Article

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

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

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. 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 1.07. This compares to its industry's average P/S of 1.22.

Finally, we should also recognize that PII has a P/CF ratio of 9.68. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid 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 figures are just a handful of the metrics value investors tend to look at, but they help show that Polaris Inc is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PII feels like a great value stock at the moment.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Polaris Inc. (PII) - free report >>

Published in