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Is Winnebago Industries (WGO) Stock Undervalued 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.

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 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 stock to keep an eye on 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 is trading with P/E ratio of 8.66 right now. For comparison, its industry sports an average P/E of 11.88. WGO's Forward P/E has been as high as 26.34 and as low as 8.03, with a median of 11.10, all within the past year.

We should also highlight that WGO has a P/B ratio of 2.32. The P/B ratio pits a stock's market value against 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 3.02. Within the past 52 weeks, WGO's P/B has been as high as 3.12 and as low as 1.84, with a median of 2.40.

Finally, we should also recognize that WGO has a P/CF ratio of 8.68. 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 14.16. Within the past 12 months, WGO's P/CF has been as high as 22.50 and as low as 7.79, with a median of 13.95.

Value investors will likely look at more than just these metrics, but the above data helps show that Winnebago Industries is likely undervalued currently. And when considering the strength of its earnings outlook, WGO sticks out at as one of the market's strongest value stocks.


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