Are Investors Undervaluing Polaris (PII) Right Now?
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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 value investors might notice is Polaris (PII). PII is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 10.33 right now. For comparison, its industry sports an average P/E of 28.79. Over the past year, PII's Forward P/E has been as high as 12.07 and as low as 8.86, with a median of 10.31.
Finally, our model also underscores that PII has a P/CF ratio of 9.12. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 17.10. Over the past 52 weeks, PII's P/CF has been as high as 14.85 and as low as 8.65, with a median of 10.22.
Value investors will likely look at more than just these metrics, but the above data helps show that Polaris 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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