Actionable insights straight to your inbox

Equities logo

How Polaris Powers Growth with ATVs, Cycles, Snowmobiles

Polaris Industries makes off-road vehicles and snowmobiles, and posts annual revenues of $4.5 billion.

With annual revenues of $4.5 billion, Minnesota-based Polaris Industries (PII) makes off-road vehicles and snowmobiles; technically, the stock has just broken out to the upside, notes Leo Fasciocco, editor of Ticker Tape Digest.

Its powersports vehicles include all-terrain vehicles and side-by-side vehicles for recreational and utility use. The company also produces motorcycles and work and transportation and military vehicles. It sells motorcycles under Indian motorcycles and Slingshot brands.

Quarterly earnings growth will show an acceleration. That is very bullish. Net for the fourth quarter is expected to rise 26% to $1.48 a share from the $1.18 the year before.

Then in the first quarter of next year, net should leap 36% to $1.02 a share from the 75 cents the year before. PII has topped the Street quarterly estimate the past four quarters by 24 cents a share, 8 cents, 5 cents and 3 cents.

The stock sells with a price-earnings ratio of 26. We see that as reasonable. Looking out to 2018, the Street is projecting a 17% increase in net to $5.66 a share from the anticipated $4.85 this year.

Technically, the stock climbed from around $90 back in August and has since broken out above $129.We are targeting the stock for a move to the $160 per share level off of its recent price breakout. A protective stop can be placed near $122.

Leo Fasciocco is editor of Ticker Tape Digest.

Subscribe to Leo Fasciocco’s Ticker Tape Digest here…

About Founded in 1981, MoneyShow is a privately held financial media company headquartered in Sarasota, Florida. As a global network of investing and trading education, MoneyShow presents an extensive agenda of live and online events that attract over 75,000 investors, traders and financial advisors around the world.

If you don't feel that U.S. culture (and much of the world in different ways) is in turmoil, you are not paying attention.
Equities short logo
Equities short logo