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Cramer: Is Polaris a bright star?

Tuesday, 28 Jan 2014 | 6:16 PM ET
Polaris CEO: Business in 'incredibly' solid shape
Tuesday, 28 Jan 2014 | 6:15 PM ET
Despite a slight loss in share, Scott Wine, Polaris Industries chairman and CEO, tells Mad Money host Jim Cramer, Polaris' great products will help to gain back share.

(Click for video linked to a searchable transcript of this Mad Money segment)

Polaris is the star that guided many ships to safety in times gone by. Is it also the stock that could guide your portfolio to profits?

Jim Cramer can't help but wonder.

"As a maker of all-terrain vehicles, snowmobiles and motorcycles, many of their products are simply fabulous playthings for the wealthy," Cramer noted.

And typically, even when the middle class and working class are struggling, the upper class does just fine.

The thesis suggests that even if the economy slows, business at Polaris should remain robust.

Westend61 | Getty Images

Recent earnings seem to confirm the outlook.

On Tuesday Polaris reported double-digit growth in both sales and earnings.

Looking at the numbers, earnings rose 26% to $1.56 a share, 1 cent ahead of forecasts by analysts polled by Thomson Reuters. Sales climbed 20% to $1.083 billion, topping forecasts for $1.063 billion.

Guidance, however, left investors underwhelmed.

Specifically Polaris gave 2014 earnings guidance of $6.17 to $6.37 a share, below consensus for $6.66, analysts say.

Cramer, however, isn't overly worried by guidance.

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"This management has a history of being conservative with its forecasts—these guys know how to do UPOD, under promise and over deliver."

Although this stock, like so many others, will likely decline if broad selling resumes, Cramer thinks Polaris belongs on your radar.

"I have never seen a company create a niche like Ploaris has and blow it out worldwide. At the same time, I realize analysts are concerned about guidance which was conservative. But I like CEO Scott Wine. I like the company."

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com

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