Polaris Industries Inc. (PII): Today's Featured Automotive 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 Automotive industry higher today making it today's featured automotive winner. The industry as a whole closed the day down 0.2%. By the end of trading, Polaris Industries rose $1.84 (2.1%) to $87.34 on average volume. Throughout the day, 1.1 million shares of Polaris Industries exchanged hands as compared to its average daily volume of 927,300 shares. The stock ranged in a price between $85.10-$87.63 after having opened the day at $85.79 as compared to the previous trading day's close of $85.50. Other companies within the Automotive industry that increased today were: Orbital Corporation ( OBT), up 19.6%, Remy International ( REMY), up 3.5%, Stoneridge ( SRI), up 2.9%, and Hyster-Yale Materials Handling ( HY), up 2.7%.
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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 $5.91 billion and is part of the consumer goods sector. The company has a P/E ratio of 21.1, above the S&P 500 P/E ratio of 17.7. Shares are up 1.7% year to date as of the close of trading on Monday. 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, China Automotive Systems ( CAAS), down 5.2%, Spartan Motors ( SPAR), down 3.9%, Meritor ( MTOR), down 3.6%, and Gentex Corporation ( GNTX), down 3.2%, were all laggards within the automotive industry with BorgWarner ( BWA) being today's automotive industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the automotive industry could consider Consumer Discretionary Sel Sec SPDR ( XLY) while those bearish on the automotive industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

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