Is Polaris Inc (PII) a Great Value Stock Right Now?
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 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) 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 P/E ratio of 12.21 right now. For comparison, its industry sports an average P/E of 35.39. Over the past 52 weeks, PII's Forward P/E has been as high as 23.32 and as low as 5.89, with a median of 13.77.
Investors should also note that PII holds a PEG ratio of 1.62. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PII's industry has an average PEG of 4.16 right now. Over the last 12 months, PII's PEG has been as high as 1.62 and as low as 0.49, with a median of 1.13.
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 0.88. This compares to its industry's average P/S of 1.07.
Finally, investors should note that PII has a P/CF ratio of 8.98. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 21.99. Within the past 12 months, PII's P/CF has been as high as 12.36 and as low as 4.69, with a median of 9.95.
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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Polaris Inc. (PII) : Free Stock Analysis Report
To read this article on Zacks.com click here.
