Back to top

Image: Bigstock

Is Winnebago Industries (WGO) Stock Undervalued Right Now?

Read MoreHide Full Article

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

Winnebago Industries (WGO - Free Report) is a stock many investors are watching right now. WGO is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 9.69, while its industry has an average P/E of 13.98. Over the past year, WGO's Forward P/E has been as high as 26.34 and as low as 9.52, with a median of 12.

Investors should also recognize that WGO has a P/B ratio of 2.52. The P/B ratio pits a stock's market value against 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 3.16. WGO's P/B has been as high as 3.12 and as low as 1.84, with a median of 2.58, over the past year.

Finally, investors should note that WGO has a P/CF ratio of 12.08. 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. This stock's P/CF looks attractive against its industry's average P/CF of 13.88. Over the past 52 weeks, WGO's P/CF has been as high as 26.44 and as low as 11.79, with a median of 15.68.

These are just a handful of the figures considered in Winnebago Industries's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that WGO is an impressive value stock right now.


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