Growth Left in Polaris (PII)? Cramer Thinks So...
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Price: $67.68 +2.45%
Rating Summary:
8 Buy, 22 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 16 | Down: 8 | New: 73
Rating Summary:
8 Buy, 22 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 16 | Down: 8 | New: 73
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Shares of Polaris Industries (NYSE: PII) can't help but move higher Wednesday following bullish comments by erudite equities expert Jim Cramer on his Mad Money show last night.
Though Polaris recently reported fourth-quarter earnings which beat Wall Street expectations by 2 cents, guidance was a little lighter than expected. The price action (stock up about 3 points since the report on January 25th), however, suggests management's conservative outlook isn't holding water, according to Cramer.
The pundit said Polaris has been "under promising" and "over delivering" over the last four quarters, leading investors to speculate about the accuracy of the company's outlook.
Growth was spread around all segments of Polaris' book, from snowmobiles to apparel. Gross margins also saw an improvement, Cramer noted (we think he's referring to annual numbers which saw expansion from 26.6 percent to 27.9 percent. Fourth-quarter numbers saw a 160 basis point contraction to 26.1 percent).
Polaris also has two key things going for it: a relationship with Bobcat and just 10 percent of revs coming from Europe. Cramer noted weakness in the region was offset by price increases, leading to no loss of market share.
Cramer thinks there is plenty of room for Polaris to continue higher despite shares being near annual highs of $65.86. With shares going for just 13 times earnings and a growth rate of 17 percent, Cramer recommends picking some up on the next dip.
Shares of Polaris are up 2 percent to $65.77 Wednesday.
Though Polaris recently reported fourth-quarter earnings which beat Wall Street expectations by 2 cents, guidance was a little lighter than expected. The price action (stock up about 3 points since the report on January 25th), however, suggests management's conservative outlook isn't holding water, according to Cramer.
The pundit said Polaris has been "under promising" and "over delivering" over the last four quarters, leading investors to speculate about the accuracy of the company's outlook.
Growth was spread around all segments of Polaris' book, from snowmobiles to apparel. Gross margins also saw an improvement, Cramer noted (we think he's referring to annual numbers which saw expansion from 26.6 percent to 27.9 percent. Fourth-quarter numbers saw a 160 basis point contraction to 26.1 percent).
Polaris also has two key things going for it: a relationship with Bobcat and just 10 percent of revs coming from Europe. Cramer noted weakness in the region was offset by price increases, leading to no loss of market share.
Cramer thinks there is plenty of room for Polaris to continue higher despite shares being near annual highs of $65.86. With shares going for just 13 times earnings and a growth rate of 17 percent, Cramer recommends picking some up on the next dip.
Shares of Polaris are up 2 percent to $65.77 Wednesday.
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