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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Polaris Inc (PII - Free Report) . PII is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 14.13, while its industry has an average P/E of 41.69. Over the past year, PII's Forward P/E has been as high as 21.87 and as low as 11.66, with a median of 13.90.
Investors will also notice that PII has a PEG ratio of 1.62. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PII's industry currently sports an average PEG of 1.94.
We should also highlight that PII has a P/B ratio of 7.91. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 8.04. PII's P/B has been as high as 8.76 and as low as 5.14, with a median of 7.30, over the past year.
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 1.09. This compares to its industry's average P/S of 1.65.
Finally, our model also underscores that PII has a P/CF ratio of 9.63. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 24.74. PII's P/CF has been as high as 11.59 and as low as 7.86, with a median of 9.69, all within the past year.
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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Is Polaris Inc (PII) Stock Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Polaris Inc (PII - Free Report) . PII is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 14.13, while its industry has an average P/E of 41.69. Over the past year, PII's Forward P/E has been as high as 21.87 and as low as 11.66, with a median of 13.90.
Investors will also notice that PII has a PEG ratio of 1.62. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PII's industry currently sports an average PEG of 1.94.
We should also highlight that PII has a P/B ratio of 7.91. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 8.04. PII's P/B has been as high as 8.76 and as low as 5.14, with a median of 7.30, over the past year.
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 1.09. This compares to its industry's average P/S of 1.65.
Finally, our model also underscores that PII has a P/CF ratio of 9.63. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 24.74. PII's P/CF has been as high as 11.59 and as low as 7.86, with a median of 9.69, all within the past year.
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.