Are Investors Undervaluing Winnebago Industries (WGO) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Neverthe...
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
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.
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.
One stock to keep an eye on is Winnebago Industries (WGO). WGO is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 8.67, which compares to its industry's average of 11.85. Over the last 12 months, WGO's Forward P/E has been as high as 14.37 and as low as 8.03, with a median of 11.
Another notable valuation metric for WGO is its P/B ratio of 2.36. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. WGO's current P/B looks attractive 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 2.39.
Finally, investors should note that WGO has a P/CF ratio of 8.82. 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 14.31. Over the past year, WGO's P/CF has been as high as 18.11 and as low as 7.79, with a median of 13.66.
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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Winnebago Industries, Inc. (WGO): Free Stock Analysis Report
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