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 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.
Medina, Minn. (1987)
Chairman/CEO Scott Wine
President/COO Bennett Morgan
Return on Equity (average, past 3 years)
$380.8 million / $106.4 million
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 90% of the 349 members who have rated Polaris believe the stock will outperform the S&P 500 going forward.
Polaris is a constant reminder to me on why I should never 'anchor' on a stock's current price. PII has had a seat on my watchlist since Aug '11, when it traded at $50. Since then, the company has executed almost perfectly and the stock price rose accordingly, hitting many new 52-week highs over the next two years.
I don't think they're done yet.
-Even at $95, PII is trading at a respectable 18 times earnings.
-There are still plenty of drivers. The US DoD awarded a $382 million contract for Polaris 'fire and emergency vehicles' through 2018. Consumer spending also continues to recover, and additional discretionary income is good for recreational vehicle sales.
-The dividend has increased 121% in four years and is still just 37% of LTM's free cash flow.
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.
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The article Why Polaris Is Poised to Keep Zooming originally appeared on Fool.com.
Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Polaris Industries. The Motley Fool owns shares of Arctic Cat. 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 Motley Fool has a disclosure policy.
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