4-Star Stocks Poised to Pop: Polaris Industries

Updated

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 (NYS: PII) has earned a respected four-star ranking.

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

Polaris facts

Headquarters (founded)

Medina, Minn. (1987)

Market Cap

$4.6 billion

Industry

Leisure products

Trailing-12-Month Revenue

$2.7 billion

Management

CEO Scott Wine (since 2008)
COO Bennett Morgan (since 2005)

Return on Equity (average, past 3 years)

54.2%

Cash/Debt

$325.3 million / $107.3 million

Dividend Yield

2.2%

Competitors

Arctic Cat
Honda Motor
Kawasaki Heavy Industries

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

On CAPS, 88% of the 226 members who have rated Polaris believe the stock will outperform the S&P 500 going forward.

A couple of months ago, one of those bulls, fellow Fool Andy Cross (TMFOpie), highlighted several of the company's positives:

Polaris is the leader in the off-road recreational vehicle market, a market that has actually been doing quite well since the recession lifted and financing improved. It is run by veterans and has a nice distribution system here in the US and a growing one internationally. They are just getting started overseas, especially in India and China, and recent acquisitions in motorcyles will help distribute sales outside of off-road (where Polaris is having a lot of success in side-by-side vehicles, the best growing market). Furthermore, Polaris has performed quite well in Europe, too, where no one is really doing all that well. So overall I like the market, the company, the management.

If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong four-star rating, Polaris may not be your top choice.

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At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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