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Are Investors Undervaluing Winnebago Industries (WGO) Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.

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.

One company value investors might notice is Winnebago Industries (WGO - Free Report) . WGO is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 6.28, while its industry has an average P/E of 8.43. Over the last 12 months, WGO's Forward P/E has been as high as 9.59 and as low as 4.16, with a median of 5.96.

Another notable valuation metric for WGO is its P/B ratio of 1.53. 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 attractive against its industry's average P/B of 2.04. Over the past year, WGO's P/B has been as high as 2.50 and as low as 1.12, with a median of 1.89.

Finally, we should also recognize that WGO has a P/CF ratio of 4.51. 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 P/CF compares to its industry's average P/CF of 5.25. Over the past 52 weeks, WGO's P/CF has been as high as 9.34 and as low as 3.30, with a median of 6.18.

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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