Polaris Industries

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Another recreation name is Polaris Industries ( PII), the firm behind the ATVs and snowmobiles of the same name. Polaris also owns storied motorcycle brands Victory and Indian, and GEM light electric vehicles. With more than 1,600 dealers in North American alone, Polaris owns a significant chunk of the power sports industry, churning out more than $2.6 billion in sales last year, and net profit margins approaching 10%.

Most of Polaris' offerings are essentially toys -- and that's just fine, especially as the housing market makes palpable steps towards recovery and interest rates skim along historic lows. For consumers who were considering buying a vacation home a few years ago, opting to buy an ATV and make a daytrip to ride it may be a lot easier to stomach. And the readily available credit from partner banks mean that they can buy ATVs cheaper than before without adding any credit risk to Polaris' books.

Financially, Polaris is in solid shape. The firm carries nearly $290 million in cash on its balance sheet, easily offsetting $107.6 million in total debt. And now, a more svelte operating profile means that PII is better suited to deal with future economic hiccups than it was a few years ago when its debt load was higher and cash was harder to come by.

The firm announces its third quarter numbers on Oct. 18, but we're betting on shares of this Rocket Stock this week.

To see all of this week's Rocket Stocks in action, check out the Rocket Stocks portfolio at Stockpickr.

-- Written by Jonas Elmerraji in Baltimore.


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At the time of publication, author had no positions in stocks mentioned.

Jonas Elmerraji is the editor and portfolio manager of the Rhino Stock Report, a free investment advisory that returned 15% in 2008. He is a contributor to numerous financial outlets, including Forbes and Investopedia, and has been featured in Investor's Business Daily, in Consumer's Digest and on MSNBC.com.

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