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Is Winnebago Industries (WGO) a Great Value Stock Right Now?

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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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

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 8.61, while its industry has an average P/E of 12.08. Over the past year, WGO's Forward P/E has been as high as 26.34 and as low as 8.61, with a median of 11.87.

Investors should also recognize that WGO has a P/B ratio of 2.24. 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 stock's P/B looks attractive against its industry's average P/B of 2.86. Over the past year, WGO's P/B has been as high as 3.12 and as low as 1.84, with a median of 2.55.

Finally, we should also recognize that WGO has a P/CF ratio of 10.73. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. WGO's current P/CF looks attractive when compared to its industry's average P/CF of 12.62. Over the past year, WGO's P/CF has been as high as 26.44 and as low as 10.73, with a median of 15.39.

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.


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