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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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

Winnebago Industries (WGO - Free Report) is a stock many investors are watching right now. WGO is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 8.58, which compares to its industry's average of 12.64. Over the past year, WGO's Forward P/E has been as high as 26.34 and as low as 8.55, with a median of 11.67.

We should also highlight that WGO has a P/B ratio of 2.25. 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 3.05. 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 2.51.

Finally, our model also underscores that WGO has a P/CF ratio of 8.41. 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 P/CF compares to its industry's average P/CF of 13.43. WGO's P/CF has been as high as 24.60 and as low as 7.79, with a median of 15.14, all within the past year.

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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