Even After Post-Earnings Surge, Underloved Polaris Stock Has More Upside Potential

PII has been on the rise for months

Oct 24, 2017 at 1:51 PM
facebook X logo linkedin


Shares of Polaris Industries Inc. (NYSE:PII) are soaring today, thanks to the company's impressive earnings report. PII stock was last seen 15.5% higher -- making it the top S&P MidCap 400 Index (MID) percentage gainer today -- and earlier hit a two-year high of $126.85. The shares are now up 50% year-to-date, and are pacing for their first close above their 36-month moving average in over two years.

pii stock

Interestingly, there's been no analyst attention on PII today. In fact, analysts have mostly remained bearish amid the stock's multi-month rise on the charts. Fifteen out of the 19 brokerages with coverage on the equity say it's a "hold" or "strong sell," and its average 12-month price target of $101.67 is well below current levels.

Plus, Polaris Industries is heavily shorted. More than one-fifth of its float is controlled by these bears, which would take more than three weeks to cover, based on average daily volumes. Short interest already fell more than 17% during the past two reporting periods, and there's clearly plenty of room for this trend to continue.

As contrarian traders, we would expect this pessimism across Wall Street to unwind, in the form of bullish analyst attention and more short covering. If this is the case, it should result in tailwinds for PII shares, and more upside could be in store.
 

Unlock Weekend Profits with Chris Prybal's Favorite Strategy Up +487.5% in 2024

With the markets going left, right, and sideways, you need to have a plan now more than ever. 

Expert Trader Chris Prybal is no stranger to volatility, and has mastered finding big stock rallies while other traders aren't looking over the weekend. Rallies that produced gains like +207% on RTX calls, +236% on MARA calls, and +238% on NET calls.

A few simple moves on Sunday at 7pm could be the “Secret Sauce” your portfolio needs to not just stay afloat, but make unprecedented gains in this turbulent market.


Don’t sit on the sidelines, beat the market with Chris Prybal's strategy. Join him now!

 

 
 
 


 
 

Rainmaker Ads CGI