Trade-Ideas: Polaris Industries (PII) Is Today's New Lifetime High Stock
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.Trade-Ideas LLC identified Polaris Industries (PII) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Polaris Industries as such a stock due to the following factors:
- PII has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $86.2 million.
- PII has traded 586,193 shares today.
- PII is trading at a new lifetime high.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in PII with the Ticky from Trade-Ideas. See the FREE profile for PII NOW at Trade-IdeasMore details on PII: Polaris Industries Inc., together with its subsidiaries, engages in designing, engineering, manufacturing, and marketing off-road vehicles, snowmobiles, and on-road vehicles primarily in the United States, Canada, and internationally. The stock currently has a dividend yield of 1.3%. PII has a PE ratio of 26.3. Currently there are 8 analysts that rate Polaris Industries a buy, no analysts rate it a sell, and 2 rate it a hold.The average volume for Polaris Industries has been 673,500 shares per day over the past 30 days. Polaris has a market cap of $8.6 billion and is part of the consumer goods sector and automotive industry. The stock has a beta of 1.43 and a short float of 7% with 7.25 days to cover. Shares are up 49.2% year to date as of the close of trading on Wednesday.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.TheStreetRatings.com Analysis:TheStreet Quant Ratings rates Polaris Industries as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, increase in net income, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.Highlights from the ratings report include:
- PII's revenue growth has slightly outpaced the industry average of 5.8%. Since the same quarter one year prior, revenues rose by 11.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- POLARIS INDUSTRIES INC has improved earnings per share by 15.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, POLARIS INDUSTRIES INC increased its bottom line by earning $4.40 versus $3.21 in the prior year. This year, the market expects an improvement in earnings ($5.34 versus $4.40).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Leisure Equipment & Products industry average. The net income increased by 14.6% when compared to the same quarter one year prior, going from $69.82 million to $80.00 million.
- PII's debt-to-equity ratio is very low at 0.13 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Despite the fact that PII's debt-to-equity ratio is low, the quick ratio, which is currently 0.59, displays a potential problem in covering short-term cash needs.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 62.09% over the past year, a rise that has exceeded that of the S&P 500 Index. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- You can view the full Polaris Industries Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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