Stock of the Day

November 1, 2021

Polaris (PII)

$61.27
-$3.27 (-5.1%)
Market Cap: $3.49B

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. It also provides ORV accessories comprising winches, bumper/brushguards, plows, racks, wheels and tires, pull-behinds, cab systems, lighting and audio systems, cargo box accessories, tracks, and oil; snowmobile accessories, which include covers, traction products, reverse kits, electric starters, tracks, bags, windshields, oil, and lubricants; and motorcycle accessories, such as saddle bags, handlebars, backrests, exhausts, windshields, seats, oil, and various chrome accessories. In addition, the company offers light duty hauling and passenger vehicles; gear and apparel, such as helmets, goggles, jackets, gloves, boots, bibs, hats, pants, and leathers; and pontoon and deck boats. The company provides its products through dealers and distributors, and online; and retail and e-commerce marketplaces. The company was formerly known as Polaris Industries Inc. Polaris Inc. was founded in 1945 and is headquartered in Medina, Minnesota.

Today's Trend

Polaris Inc. (NYSE: PII) shares increased as investors responded to stronger-than-expected second-quarter results, improving demand, and several higher analyst price targets. The company’s outlook also received support from a newly declared quarterly dividend.

  • Solid Q2 performance: Polaris reported second-quarter EPS of $1.97, substantially above the $0.76 consensus estimate, while revenue of $2.02 billion exceeded expectations and increased 9.2% year over year. Analysts highlighted solid powersports demand, margin expansion, and tariff refunds as key contributors. Polaris rallies after solid demand and tariff refunds boost Q2 results
  • Dividend declared: The board approved a regular quarterly cash dividend of $0.68 per share, payable September 15 to shareholders of record September 1. The payout reinforces Polaris’s shareholder-return commitment and may support investor sentiment. Polaris Declares Regular Cash Dividend
  • Higher valuation targets: Citigroup raised its target to $73 from $70, Wells Fargo to $70 from $65, RBC to $75 from $65, and Baird to $72 from $70. The revisions indicate improved expectations following the quarterly results.
  • Analyst ratings remain cautious: The firms maintained Neutral, Equal Weight, Sector Perform, or similar ratings, suggesting that the higher targets reflect modest upside rather than a broad change to Polaris’s risk-reward outlook.
  • Tariff risks persist: Despite tariff refunds benefiting the quarter, ongoing tariff-related costs and uncertainty remain headwinds for margins and future earnings. Investors will also monitor whether demand momentum can continue after the favorable second-quarter comparisons. PII Q2 deep dive: Powersports momentum, margin expansion, and ongoing tariff headwinds
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