#7 - Polaris (NYSE:PII)
Like many stocks on this list, Polaris Inc. (NYSE: PII) is underperforming the market. Elevated inflation and higher interest rates took the juice out of this powersports vehicles manufacturer. The products may be nice to have, but they’re not must-haves.
That slowdown is clear in the company’s first- and second-quarter earnings reports. In both cases, revenue missed estimates and was down sharply YOY.
However, the rate of inflation is coming down, and it may have come down enough for the Fed to lower interest rates. Analysts have been mostly bearish on Polaris since the company’s July earnings report. The consensus rating of Hold is supported by a forward P/E ratio of 22x which would suggest a fully valued stock.
However, if you believe that consumer demand will pick up, PII stock may be worth a buy. While you wait, you can benefit from buying a dividend aristocrat that has increased its dividend for 29 consecutive years and currently offers investors a 3.11% yield.
About Polaris
Polaris Inc designs, engineers, manufactures, and markets powersports vehicles in the United States, Canada, and internationally. It operates through three segments: Off-Road, On-Road, and Marine. The company offers off-road vehicles (ORVs), including all-terrain vehicles and side-by-side vehicles; military and commercial ORVs; snowmobiles; motorcycles; and moto-roadsters, quadricycles, and boats.
Read More - Current Price
- $83.22
- Consensus Rating
- Hold
- Ratings Breakdown
- 4 Buy Ratings, 7 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $89.18 (7.2% Upside)
With a rate cut of at least 25 basis points (0.25%) a near certainty in September, now is a good time to look for mid-cap stocks to buy.
History shows that stocks will typically underperform after a rate cut. That's because falling interest rates are a form of stimulus. An economy that needs to be stimulated is generally not considered healthy.
But if you're playing the long game, that shouldn't matter. Because over time, a looser monetary policy is generally good for corporate profits. And one of the single best predictors of stock price growth is earnings (profit) growth.
MarketBeat has a stock screener that can help you sort specifically for mid-cap stocks. More than that, you can screen for different sectors and performance indicators such as projected earnings growth.
And if exchange-traded funds (ETFs) are more your style, you can use the MarketBeat ETF screener to find funds that specialize in mid-cap stocks.
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