Tuesday, July 30, 2013

Why Polaris Is Poised to Keep Motoring

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, all-terrain vehicle maker Polaris Industries (NYSE: PII  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Polaris and see what CAPS investors are saying about the stock right now.

Polaris facts

Headquarters (founded)

Medina, Minn. (1987)

Market Cap

$6.7 billion

Industry

Leisure products

Trailing-12-Month Revenue

$3.3 billion

Management

Chairman/CEO Scott Wine

President/COO Bennett Morgan

Return on Equity (average, past three years)

53.5%

Cash/Debt

$380.8 million / $106.4 million

Dividend Yield

1.8%

Competitors

Arctic Cat

Harley-Davidson

Honda Motor

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 90% of the 358 members who have rated Polaris believe the stock will outperform the S&P 500 going forward.   

Just last week, one of those Fools, hughesgcc, brought a potent source of Polaris' growth to our community's attention:

Polaris is a solid company who has cracked the code on adventure sports in both design and workmanship. They have steadily risen to a $95+ share price after hard work and development of their products. They purchased the Indian Motorcycle name in 2011 and have used their corporate knowledge (they built Victory Motorcycles brand from the ground up), and their endless capital to resurrect the old Indian Chief with 21st century engineering. ... I expect the market to be late to the party on this, they will, no doubt, seize a portion of the [Harley-Davidson] market in the next 5 years and force Harley to innovate.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Polaris may not be your top choice.

With the American markets reaching new highs, investors and pundits alike are skeptical about future growth. They shouldn't be. Many global regions are still stuck in neutral, and their resurgence could result in windfall profits for select companies. A recent Motley Fool report, "3 Strong Buys for a Global Economic Recovery," outlines three companies that could take off when the global economy gains steam. Click here to read the full report!

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