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

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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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 holding a Zacks Rank of #2 (Buy) and a Value grade of A.

Investors will also notice that PII has a PEG ratio of 1.62. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PII's PEG compares to its industry's average PEG of 2.03.

Investors should also recognize that PII has a P/B ratio of 7.57. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. PII's current P/B looks attractive when compared to its industry's average P/B of 7.89. Over the past 12 months, PII's P/B has been as high as 8.76 and as low as 5.14, with a median of 6.70.

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 1.08. This compares to its industry's average P/S of 1.72.

Finally, our model also underscores that PII has a P/CF ratio of 9.23. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. PII's current P/CF looks attractive when compared to its industry's average P/CF of 23.72. Over the past 52 weeks, PII's P/CF has been as high as 12.36 and as low as 7.86, with a median of 9.86.

These are just a handful of the figures considered in Polaris Inc's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that PII is an impressive value stock right now.


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