Sunday, November 3, 2013

"Enough of the gloom and doom. Let's have some fun with this recreational vehicle company that has been pinning the needle for months. Polaris Industries"

Dow Jones Industrial Average 15,615.55 (UP)  Week ending 11-01-2013

             Polaris Industries (Symbol PII)
This is Blog #200 today, so a small personal milestone for me on Freewilly's Stockpicker Blog. I am much better at picking winning stocks now than I was in my early years of blogging.

Two of my defined stock picking screening criteria that have emerged over the years are: I love stocks of companies that have PEG ratio's under 1.5 and also that have a Return on Equity above 15%.  I have found these stocks to be very dynamic and have produced very good stock returns.

Polaris Industries Inc. (Symbol PII, $131.09) is a prime example of one of the stocks that fit these criteria perfectly. Polaris has a PEG of 1.093, well below my 1.5 criteria, and an amazing Return on Equity of 46.68%.  The stock chart and price have been on a straight line and going up for months.

Polaris Industries is an American manufacturer that designs, engineers and manufactures off road vehicles and on road vehicles.  Its products include side by side vehicles, terrain vehicles, victory motorcycles, Indian motorcycles, snowmobiles, GEM electric apparel accessories and polaris defense.  Polaris is based near Minneapolis in Medina, Minnesota, USA.  The company did $3.594 Billion on sales last year.

Polaris is projecting earnings per share for 2013 of $5.37 and is looking like $6.44 per share for 2014.

The stock of PII is up 52.71% YTD.  Analysts have 9 buy and 2 Overweight recommendations on the stock.

The company pays an annual 1.28% Dividend. The forward PE on the stock is 19 with year over year quarterly growth of 19.55%.

I know the stock market is at all time highs, so you may need to be patient to find a spot to buy in on this one.

The description below is from Polaris's website.

"Polaris Creed"

At Polaris, making great products is not just a job - it is a way of life
. That is why our creed is etched in steel at the entrance at each of our locations. Our employees are not only building and designing our machines, they are also enthusiastic riders. This gives us the competitive edge as we work together to make the riding experience better."

I really like this pick. A perfect growth stock for a diversified IRA Portfolio.

Talk to you next weekend,  (or as always, I invite you to comment during the week, even if just to let me know you are reading. All questions will be answered. This site is for the novice and expert investors. The only money I make off of this site is by following my own investment advice and using the good ideas of other investors that I sometimes bring to light on this site. )


No comments:

Post a Comment