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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
One company to watch right now is Polaris Inc (PII). PII is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. PII has a P/S ratio of 1.16. This compares to its industry's average P/S of 1.4.
Finally, investors will want to recognize that PII has a P/CF ratio of 11.96. 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. PII's P/CF compares to its industry's average P/CF of 21.99. Over the past year, PII's P/CF has been as high as 12.36 and as low as 7.42, with a median of 9.93.
Value investors will likely look at more than just these metrics, but the above data helps show that Polaris Inc is likely undervalued currently. And when considering the strength of its earnings outlook, PII sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing Polaris Inc (PII) 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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
One company to watch right now is Polaris Inc (PII). PII is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. PII has a P/S ratio of 1.16. This compares to its industry's average P/S of 1.4.
Finally, investors will want to recognize that PII has a P/CF ratio of 11.96. 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. PII's P/CF compares to its industry's average P/CF of 21.99. Over the past year, PII's P/CF has been as high as 12.36 and as low as 7.42, with a median of 9.93.
Value investors will likely look at more than just these metrics, but the above data helps show that Polaris Inc is likely undervalued currently. And when considering the strength of its earnings outlook, PII sticks out at as one of the market's strongest value stocks.