Are Investors Undervaluing Polaris (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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 stock to keep an eye on is Polaris (PII). PII is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Investors should also recognize that PII has a P/B ratio of 4.84. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. PII's current P/B looks attractive when compared to its industry's average P/B of 5.24. Over the past year, PII's P/B has been as high as 6.63 and as low as 4.84, with a median of 5.68.
Finally, investors should note that PII has a P/CF ratio of 7.09. 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 20.61. PII's P/CF has been as high as 14.05 and as low as 7.09, with a median of 9.33, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Polaris is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PII feels like a great value stock at the moment.
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Polaris Inc. (PII) : Free Stock Analysis Report
