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

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 higher today making it today's featured consumer goods winner. The sector as a whole closed the day up 0.3%. By the end of trading, Polaris Industries rose $1.94 (2.3%) to $84.52 on light volume. Throughout the day, 601,794 shares of Polaris Industries exchanged hands as compared to its average daily volume of 893,200 shares. The stock ranged in a price between $82.30-$84.83 after having opened the day at $82.42 as compared to the previous trading day's close of $82.58. Other companies within the Consumer Goods sector that increased today were: Central European Distribution ( CEDC), up 9.6%, Standard Register Company ( SR), up 9.4%, Hyster-Yale Materials Handling ( HY), up 9.2%, and Appliance Recycling Centers ( ARCI), up 8.5%.
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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 $5.55 billion and is part of the automotive industry. The company has a P/E ratio of 19.8, above the S&P 500 P/E ratio of 17.7. Shares are up 43.7% 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 negative front, Blyth ( BTH), down 9.9%, Castle Brands Incorporated ( ROX), down 5.9%, Navistar International ( NAV), down 5.7%, and Crumbs Bake Shop ( CRMB), down 5.3%, were all laggards within the consumer goods sector with Pitney Bowes ( PBI) being today's consumer goods sector laggard.

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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