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

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Polaris Industries ( PII) pushed the Automotive industry higher today making it today's featured automotive winner. The industry as a whole closed the day up 0.2%. By the end of trading, Polaris Industries rose $2.82 (2.1%) to $138.80 on average volume. Throughout the day, 664,103 shares of Polaris Industries exchanged hands as compared to its average daily volume of 618,000 shares. The stock ranged in a price between $135.43-$139.00 after having opened the day at $135.98 as compared to the previous trading day's close of $135.98. Other companies within the Automotive industry that increased today were: Hyster-Yale Materials Handling Inc Class A ( HY), up 5.3%, Winnebago Industries ( WGO), up 3.2%, Tesla Motors ( TSLA), up 3.1% and Icahn ( IEP), up 2.9%.

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 internationally. Polaris Industries has a market cap of $9.4 billion and is part of the consumer goods sector. The company has a P/E ratio of 26.6, above the S&P 500 P/E ratio of 17.7. Shares are up 61.6% year to date as of the close of trading on Friday. Currently there are 8 analysts that rate Polaris Industries a buy, no analysts rate it a sell, and 2 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 5.8%, Westport Innovations ( WPRT), down 4.7%, Federal-Mogul ( FDML), down 1.8% and Patrick Industries ( PATK), down 1.6% , were all laggards within the automotive industry with American Axle & Mfg Holdings ( AXL) 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).

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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