Polaris Industries Inc. (PII): Today's Featured Consumer Goods Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Polaris Industries ( PII) pushed the Consumer Goods sector lower today making it today's featured Consumer Goods laggard. The sector as a whole closed the day down 0.4%. By the end of trading, Polaris Industries fell $1.21 (-1.5%) to $80.74 on average volume. Throughout the day, one million shares of Polaris Industries exchanged hands as compared to its average daily volume of 876,100 shares. The stock ranged in price between $80.52-$83.65 after having opened the day at $83.65 as compared to the previous trading day's close of $81.95. Other companies within the Consumer Goods sector that declined today were: Mattress Firm ( MFRM), down 21.9%, Chromcraft Revington ( CRC), down 12.3%, Select Comfort Corporation ( SCSS), down 9.7%, and SGOCO Group ( SGOC), down 8.1%.
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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 Europe. Polaris Industries has a market cap of $5.66 billion and is part of the automotive industry. The company has a P/E ratio of 20.2, above the S&P 500 P/E ratio of 17.7. Shares are up 46.4% year to date as of the close of trading on Tuesday. Currently there are 10 analysts that rate Polaris Industries a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates Polaris Industries as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth 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.

On the positive front, Tofutti Brands ( TOF), up 16.2%, China Zenix Auto International Ltd ADR ( ZX), up 13.2%, Standard Register Company ( SR), up 9.2%, and Nautilus Group ( NLS), up 8.6%, were all gainers within the consumer goods sector with Coca-Cola ( CCE) being today's featured consumer goods sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the consumer goods sector could consider iShares Dow Jones US Cons Goods ( IYK) while those bearish on the consumer goods sector could consider ProShares Ultra Sht Consumer Goods ( SZK).

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