Polaris Inc. (PII) Hit a 52 Week High, Can the Run Continue?

The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on July 28, 2026, Polaris Inc reported EPS of $1.97 versus consensus estimate of $0.77.

For the current fiscal year, Polaris Inc is expected to post earnings of $1.76 per share on $7.32 in revenues. This represents a 17700% change in EPS on a 2.42% change in revenues. For the next fiscal year, the company is expected to earn $3.21 per share on $7.62 in revenues. This represents a year-over-year change of 82.9% and 4%, respectively.

Valuation Metrics

While Polaris Inc has moved to its 52-week high over the past few weeks, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.

On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.

Polaris Inc has a Value Score of B. The stock's Growth and Momentum Scores are C and F, respectively, giving the company a VGM Score of B.

In terms of its value breakdown, the stock currently trades at 42.5X current fiscal year EPS estimates, which is a premium to the peer industry average of 19.5X. On a trailing cash flow basis, the stock currently trades at 14.7X versus its peer group's average of 8.8X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.

Zacks Rank

We also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Polaris Inc currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Polaris Inc meets the list of requirements. Thus, it seems as though Polaris Inc shares could still be poised for more gains ahead.

How Does PII Stack Up to the Competition?

Shares of PII have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is General Motors Company (GM). GM has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of A.

Earnings were strong last quarter. General Motors Company beat our consensus estimate by 14.06%, and for the current fiscal year, GM is expected to post earnings of $13.23 per share on revenue of $185.8 billion.

Shares of General Motors Company have gained 12.5% over the past month, and currently trade at a forward P/E of 6.58X and a P/CF of 3.22X.

The Automotive - Domestic industry is in the top 33% of all the industries we have in our universe, so it looks like there are some nice tailwinds for PII and GM, even beyond their own solid fundamental situation.

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This article originally published on Zacks Investment Research (zacks.com).

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