10 Best Boating Stocks to Buy Now

2. Polaris Inc. (NYSE:PII)

Number of Hedge Fund Holders: 26

Polaris Inc. (NYSE:PII) is ranked second on our list of the Best Boating Stocks. It creates, develops, and produces power sports vehicles for the off-road, on-road, and maritime markets. The company’s sustained weak demand for recreational vehicles caused it to fail earnings estimates and reduce its FY2024 guidance. The firm has also had to provide dealers cheaper floor plan financing, advertising support, and more promotional activity through rebates since dealer inventories are still too high, all of which are putting pressure on margins. The pandemic’s strong sales, which pushed demand ahead, are also to blame for the retail downturn.

The business has historically operated well in the past, and the current management has shown operating discipline by selling off poorly performing companies that were purchased by the previous management, concentrating on the company’s power sports roots, and carrying on the tradition of giving money back to shareholders through buybacks and dividends. Business cycle returns are solid, with returns on tangible capital often in the mid-to-high teens. Despite a decline in cash generation, which is to be expected given the challenging retail environment, Polaris Inc. (NYSE:PII) is still well-funded.

The redesign of the helms in Bennington pontoons and the launch of the new Series M in 2024 show how innovation in the maritime industry continues to appeal to consumers, reaffirming Polaris Inc. (NYSE:PII)’s dedication to product quality across all market categories.