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Are Investors Undervaluing Polaris Inc (PII) Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 13.64, which compares to its industry's average of 40.12. Over the last 12 months, PII's Forward P/E has been as high as 21.95 and as low as 11.66, with a median of 13.97.

Investors should also note that PII holds a PEG ratio of 1.62. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. PII's PEG compares to its industry's average PEG of 1.87.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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 1.06. This compares to its industry's average P/S of 1.62.

Finally, our model also underscores that PII has a P/CF ratio of 9.27. 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. PII's P/CF compares to its industry's average P/CF of 23.04. Over the past 52 weeks, PII's P/CF has been as high as 11.75 and as low as 7.86, with a median of 9.76.

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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