Polaris Industries Inc. (PII): Today's Featured Automotive 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 Automotive industry lower today making it today's featured Automotive laggard. The industry as a whole closed the day down 0.1%. By the end of trading, Polaris Industries fell $5.31 (-5.8%) to $86.62 on heavy volume. Throughout the day, 3.5 million shares of Polaris Industries exchanged hands as compared to its average daily volume of 886,300 shares. The stock ranged in price between $85.70-$90 after having opened the day at $88.85 as compared to the previous trading day's close of $91.93. Other companies within the Automotive industry that declined today were: Ford Motor ( F), down 4.6%, Arctic Cat ( ACAT), down 3.9%, Meritor ( MTOR), down 3.6%, and Thor Industries ( THO), down 2.1%.
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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 $6.43 billion and is part of the consumer goods sector. The company has a P/E ratio of 23, above the S&P 500 P/E ratio of 17.7. Shares are up 10.8% 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 three 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 good cash flow from operations. 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, Gentherm ( THRM), up 4.9%, Miller Industries ( MLR), up 3.8%, Gentex Corporation ( GNTX), up 3.7%, and Harley-Davidson ( HOG), up 2.5%, were all gainers within the automotive industry with Autoliv ( ALV) being today's featured automotive industry leader.

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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