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

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

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. The stock has a Forward P/E ratio of 14.21. This compares to its industry's average Forward P/E of 41.13. PII's Forward P/E has been as high as 23.32 and as low as 11.66, with a median of 14.77, all within the past year.

PII is also sporting a PEG ratio of 1.62. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. PII's PEG compares to its industry's average PEG of 1.95. Over the last 12 months, PII's PEG has been as high as 1.62 and as low as 1.29, with a median of 1.45.

Another notable valuation metric for PII is its P/B ratio of 7.76. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 8.16. Within the past 52 weeks, PII's P/B has been as high as 8.76 and as low as 4.01, with a median of 6.58.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. PII has a P/S ratio of 1.09. This compares to its industry's average P/S of 1.69.

Finally, our model also underscores that PII has a P/CF ratio of 9.45. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 30.61. Within the past 12 months, PII's P/CF has been as high as 12.36 and as low as 7.86, with a median of 9.92.

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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