The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Polaris Inc (PII). PII is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 6.62, which compares to its industry's average of 13.93. Over the past 52 weeks, PII's Forward P/E has been as high as 16.41 and as low as 5.89, with a median of 13.71.
Investors will also notice that PII has a PEG ratio of 0.55. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PII's industry currently sports an average PEG of 1.55. Within the past year, PII's PEG has been as high as 1.37 and as low as 0.49, with a median of 1.05.
We should also highlight that PII has a P/B ratio of 2.59. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.86. Over the past 12 months, PII's P/B has been as high as 7.08 and as low as 2.31, with a median of 5.78.
Finally, we should also recognize that PII has a P/CF ratio of 5.27. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 5.98. Over the past 52 weeks, PII's P/CF has been as high as 11.83 and as low as 4.69, with a median of 10.32.
These are just a handful of the figures considered in Polaris Inc's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that PII is an impressive value stock right now.
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Polaris Industries Inc. (PII) : Free Stock Analysis Report
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