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Should Value Investors Buy Winnebago Industries (WGO) Stock?

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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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 to watch right now is Winnebago Industries (WGO - Free Report) . WGO is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 6.40, which compares to its industry's average of 9.78. Over the past year, WGO's Forward P/E has been as high as 14.37 and as low as 6.07, with a median of 9.13.

We should also highlight that WGO has a P/B ratio of 2.14. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.91. Over the past year, WGO's P/B has been as high as 3.12 and as low as 1.89, with a median of 2.38.

Finally, investors will want to recognize that WGO has a P/CF ratio of 7.01. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. WGO's P/CF compares to its industry's average P/CF of 14.54. Over the past 52 weeks, WGO's P/CF has been as high as 16.56 and as low as 6.18, with a median of 8.61.

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.


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