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Polaris Inc (PII) Stock Sinks As Market Gains: What You Should Know

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Polaris Inc (PII - Free Report) closed at $133.77 in the latest trading session, marking a -0.34% move from the prior day. This change lagged the S&P 500's 1.42% gain on the day. Meanwhile, the Dow gained 0.1%, and the Nasdaq, a tech-heavy index, added 3.69%.

Heading into today, shares of the snowmobile and ATV maker had gained 9.94% over the past month, outpacing the Auto-Tires-Trucks sector's loss of 19.81% and the S&P 500's loss of 2.26% in that time.

Investors will be hoping for strength from PII as it approaches its next earnings release. The company is expected to report EPS of $1.52, up 590.91% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.84 billion, up 30.66% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $8.72 per share and revenue of $8.08 billion, which would represent changes of +12.66% and +14.91%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for PII. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. PII is currently a Zacks Rank #2 (Buy).

Investors should also note PII's current valuation metrics, including its Forward P/E ratio of 15.4. For comparison, its industry has an average Forward P/E of 16.39, which means PII is trading at a discount to the group.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 217, which puts it in the bottom 15% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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