Is Winnebago Industries (WGO) a Great Value Stock Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Winnebago Industries (WGO). WGO is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 10.54, which compares to its industry's average of 13.95. WGO's Forward P/E has been as high as 26.34 and as low as 9.70, with a median of 12.20, all within the past year.
Another valuation metric that we should highlight is WGO's P/B ratio of 2.72. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. WGO's current P/B looks attractive when compared to its industry's average P/B of 3.47. WGO's P/B has been as high as 3.12 and as low as 1.84, with a median of 2.55, over the past year.
Finally, investors will want to recognize that WGO has a P/CF ratio of 13.06. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. WGO's current P/CF looks attractive when compared to its industry's average P/CF of 17.80. Over the past 52 weeks, WGO's P/CF has been as high as 26.44 and as low as 11.89, with a median of 15.68.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Winnebago Industries is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, WGO feels like a great value stock at the moment.
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