Among the Oversold Stocks to Buy in 2025 Amid Inflation Fears

We recently published a list of 10 Oversold Stocks to Buy in 2025 Amid Inflation Fears. In this article, we are going to take a look at where Polaris Inc. (NYSE:PII) stands against other oversold stocks to buy in 2025 amid inflation fears.

The stock market continues to face significant volatility, with major indices continuing their decline from last week. The S&P 500 is down nearly 2%, while the Nasdaq is equally struggling at over 2.5% in the red.

The implementation of new tariffs had already spooked the market. However, it was dealt an additional blow as the core Personal Consumption Expenditures index reading came in hotter than expected. Inflation and recession concerns are dominating the market, but this also presents an opportunity for outperformance.

Stocks that are oversold as a result of the current dip present a great opportunity for outperformance in 2025. We decided to come up with a list of such stocks.

To ensure that these stocks were suitable for a bear market, were it to persist, we also added an additional criterion of a strong dividend yield so that investors can accumulate dividends while they wait for a market turnaround. For this list, we only considered stocks with a market cap of at least $2 billion that are down considerably since the start of the year.

A motorcyclist enjoying the open road on a sunny day.

Polaris Inc. (NYSE:PII) is an engineer, manufacturer, designer, and marketer of power sports vehicles. The company operates in On-Road, Off-Road, and Marine segments. It distributes its products through distributors, dealers, and retail and e-commerce marketplaces. The company’s stock is experiencing a decline of 27% this year.

The reason for the dip is Polaris (NYSE:PII)’s 2025 guidance, threatened by both lower revenue and thinning margins. After reporting a 24.6% YoY decline in revenue at its Q4 earnings, the firm further disappointed with a 1% to 4% reduction in revenue for the year 2025. The EPS could go down by as much as 65% as margins stay under pressure from the employee profit-sharing program, reductions in production, and negative mix.

Investors willing to bet on the rather high 6.2% yield may be able to take comfort in the CEO’s comments at the previous quarter’s earnings call:

“Polaris (NYSE:PII) has weathered storms before, and we believe we are positioning our organization to emerge from this downcycle even stronger.”

Overall, PII ranks 3rd on our list of oversold stocks to buy in 2025 amid inflation fears. While we acknowledge the potential of PII as a leading investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as PII but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock