Is Polaris (PII) Stock Undervalued Right Now?

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company value investors might notice is Polaris (PII). PII is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

Investors should also recognize that PII has a P/B ratio of 5.91. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 5.93. Within the past 52 weeks, PII's P/B has been as high as 7.50 and as low as 5.04, with a median of 5.76.

Finally, our model also underscores that PII has a P/CF ratio of 10.19. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 18.09. Over the past year, PII's P/CF has been as high as 10.78 and as low as 7.48, with a median of 9.23.

Value investors will likely look at more than just these metrics, but the above data helps show that Polaris is likely undervalued currently. And when considering the strength of its earnings outlook, PII sticks out at as one of the market's strongest value stocks.

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