Here's Why You Should Buy Polaris (PII) Stock Right Away

Shares of Polaris Industries Inc. (NYSE:PII) have surged 43.2% in the past year, widely outpacing its industry’s growth of 11.6%.

Meanwhile, though the Zacks Consensus Estimate for current-year earnings remained stable, the same for 2018 have inched up 0.4% backed by six upward revisions.

Given this Zacks Rank #2 (Buy) company’s solid progress on the fundamentals, we believe that this is the right time to add the stock to your portfolio as it is poised to carry the momentum ahead.

What Makes Polaris a Solid Pick?

Solid Estimated Sales & EPS Growth: Polaris’ current-year revenues are anticipated to grow 14.1% year over year, widely outpacing the industry’s projected average growth of 7.5%.

Strong top-line growth is expected to translate to an even more robust bottom-line performance. Therefore, the company’s projected EPS growth is a whopping 28.6% compared with the industry average of 19.7%.

Moreover, the company’s long-term EPS growth rate estimate is pegged at 12%.

Arguably, nothing is more important than earnings growth as surging profit levels is often an indication of strong prospects (and stock price gains) ahead for the company in question.

Superior Return on Equity: Polaris delivered return on equity (ROE) of 26.5% in the trailing 12 months compared with the industry’s average of 18.1%. This supports its growth potential and indicates that the recreational vehicles maker reinvests more efficiently compared with its peers.

Good VGM Score: Polaris has a VGM Score of A. Our VGM Score identifies stocks that have the most attractive value, growth and momentum characteristics. In fact, our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or 2 make solid investment choices.

Stable Dividend Stream: Polaris has a history of returning wealth to shareholders consistently through quarterly dividend payments. Currently, the company’s dividend yield of 2.2% is higher than the industry average of 1.5%. These regular dividend payments reinstate our faith in the company’s strong fundamentals and sound cash flow position.

Key Picks

Some other top-ranked stocks in the industry include Malibu Boats, Inc. (NASDAQ:MBUU) , Johnson Outdoors Inc. (NASDAQ:JOUT) and Callaway Golf Company (NYSE:ELY) . While Malibu Boats and Johnson Outdoors sport a Zacks Rank #1, Callaway Golf flaunts the same bullish rank as Polaris. You can see the complete list of today’s Zacks #1 Rank stocks here.

In the trailing four quarters, Malibu Boats and Callaway Golf pulled off an average positive earnings surprise of 6.01% and 23.29%, respectively.

Johnson Outdoors has witnessed the Zacks Consensus Estimate for current-year earnings revise upward by 23.2% over the past two months.

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With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

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