Back to top

Image: Bigstock

Is Winnebago Industries (WGO) Stock Undervalued Right Now?

Read MoreHide Full Article

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 company value investors might notice is Winnebago Industries (WGO - Free Report) . WGO is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 8.17, while its industry has an average P/E of 11.47. WGO's Forward P/E has been as high as 14.37 and as low as 7.97, with a median of 10.75, all within the past year.

Investors should also recognize that WGO has a P/B ratio of 2.23. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.99. Over the past 12 months, WGO's P/B has been as high as 3.12 and as low as 1.84, with a median of 2.39.

Finally, investors should note that WGO has a P/CF ratio of 8.34. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 14.02. Within the past 12 months, WGO's P/CF has been as high as 18.11 and as low as 7.79, with a median of 13.32.

These are only a few of the key metrics included in Winnebago Industries's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, WGO looks like an impressive value stock at the moment.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Winnebago Industries, Inc. (WGO) - free report >>

Published in