Polaris Industries (PII) Weak On High Volume
Trade-Ideas LLC identified
(
) as a weak on high relative volume 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 $85.4 million.
- PII has traded 151,343 shares today.
- PII is trading at 3.81 times the normal volume for the stock at this time of day.
- PII is trading at a new low 3.05% below yesterday's close.
'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on PII:
Polaris Industries Inc., together with its subsidiaries, designs, engineers, manufactures, and markets off-road vehicles, snowmobiles, motorcycles, and small vehicles primarily in the United States, Canada, Western Europe, Australia, and Mexico. The stock currently has a dividend yield of 2%. PII has a PE ratio of 15. Currently there are 14 analysts that rate Polaris Industries a buy, no analysts rate it a sell, and 6 rate it a hold.
The average volume for Polaris Industries has been 953,300 shares per day over the past 30 days. Polaris has a market cap of $7.0 billion and is part of the consumer goods sector and automotive industry. The stock has a beta of 0.91 and a short float of 12.5% with 9.27 days to cover. Shares are down 30.2% year-to-date as of the close of trading on Monday.
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Analysis:
rates Polaris Industries as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 1.2%. 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 11.7% 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 $6.65 versus $5.40 in the prior year. This year, the market expects an improvement in earnings ($7.40 versus $6.65).
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Leisure Equipment & Products industry average. The net income increased by 10.2% when compared to the same quarter one year prior, going from $140.83 million to $155.17 million.
- Net operating cash flow has increased to $374.09 million or 49.92% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 10.53%.
- The current debt-to-equity ratio, 0.33, is low and is below the industry average, implying that there has been successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.45 is very weak and demonstrates a lack of ability to pay short-term obligations.
- You can view the full Polaris Industries Ratings Report.
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