Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 3 stocks made the list for top value stocks in the Recreational Products industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Why Focus on Undervalued Recreational Products Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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3 Undervalued Recreational Products Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 3 undervalued stocks in the Recreational Products industry for Tuesday, September 24, 2024. Let’s take a closer look at their individual scores to see how they measure up against each other and the Recreational Products industry median.

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

Lazydays Holdings Inc’s Value Grade

Value Grade:

Lazydays Holdings, Inc. is a holding company. The Company operates recreational vehicle (RV) dealerships and offers a portfolio of products and services for RV owners and outdoor enthusiasts. The Company provides a spectrum of RV products: new and pre-owned RV sales, RV-parts and service, financing and insurance products, third-party protection plans, after-market parts and accessories, and RV camping facilities. It provides these offerings through its Lazydays branded dealerships. It operates approximately 24 Lazydays dealership and service locations across 15 states. Its RV brands include Forest River, Thor, and East to West, among others. It also has dealerships located at the Villages, Florida; Tucson and Phoenix, Arizona; Minneapolis, Minnesota; Knoxville, Nashville and Maryville, Tennessee; Loveland and Denver, Colorado; Elkhart and Burns Harbor, Indiana; Portland, Oregon; Vancouver, Washington, and Milwaukee, Wisconsin. It also has a service center location near Houston, Texas.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Lazydays Holdings Inc has a Value Score of 94, which is considered to be undervalued.

When you look at Lazydays Holdings Inc’s price-to-sales ratio at 0.02 compared to the industry median at 0.76, this company has a lower price relative to revenue compared to its peers. This could make Lazydays Holdings Inc’s stock more attractive for value investors.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. Lazydays Holdings Inc’s shareholder yield is lower than its industry median ratio of 0.46%. Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. Lazydays Holdings Inc’s price-to-book ratio is lower than its industry median ratio of 1.42. This could make Lazydays Holdings Inc more attractive to investors looking for a new addition to their portfolio.

Twin Vee Powercats Co’s Value Grade

Value Grade:

Twin Vee PowerCats Co. is a designer, manufacturer, and marketer of recreational and commercial power catamaran boats. The Company operates through three segments: Gas-powered Boats, Electric-Powered Boats, and Franchise. The Gas-powered Boat segment manufactures and distributes gas-powered boats. The Electric-Powered Boats segment is developing fully electric boats, through its subsidiary, Forza X1, Inc. The Franchise segment is developing a standard product offering and is selling franchises across the United States through its wholly owned subsidiary, Fix My Boat, Inc. Its gas-powered boats allow consumers to use them for a range of recreational activities, including fishing, diving and water skiing and commercial activities, including transportation, eco-tours, fishing, and diving expeditions. The Company primarily sells its boats through a network of 20 independent dealers in 34 locations across North America and the Caribbean.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Twin Vee Powercats Co has a Value Score of 95, which is considered to be undervalued.

Twin Vee Powercats Co’s price-to-book ratio is higher than its peers. This could make Twin Vee Powercats Co less attractive for value investors when compared to the industry median at 1.42.

You can read more about Twin Vee Powercats Co’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Winnebago Industries, Inc.’s Value Grade

Value Grade:

Winnebago Industries, Inc. manufactures recreation vehicles (RVs) and marine products with a diversified portfolio used primarily in leisure travel and outdoor recreational activities. It also designs and manufactures advanced battery solutions that deliver house power, supporting internal electrical features and appliances for a range of outdoor products including RVs, boats, specialty and other low-speed vehicles, as well as other industrial applications. It produces its towable RV units in Indiana; its motorhome RV units in Iowa and Indiana; its marine units in Indiana and Florida, and its battery solutions in Florida. Its products are offered under the Winnebago, Grand Design, Chris-Craft, Newmar and Barletta brands, which are used primarily in leisure travel and outdoor recreation activities. Its segments include Grand Design towables, Winnebago towables, Winnebago motorhomes, Newmar motorhomes, Chris-Craft marine, Barletta marine, Winnebago specialty vehicles and Lithionics.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Winnebago Industries, Inc. has a Value Score of 75, which is considered to be undervalued.

Winnebago Industries, Inc.’s price-earnings ratio is 22.4 compared to the industry median at 20.1. This means that it has a higher price relative to its earnings compared to its peers. This makes Winnebago Industries, Inc. less attractive for value investors.

Winnebago Industries, Inc.’s price-to-book ratio is higher than its peers. This could make Winnebago Industries, Inc. less attractive for value investors when compared to the industry median at 1.42.

You can read more about Winnebago Industries, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Recreational Products Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Recreational Products stocks as well as other industrys.

Choosing Which of the 3 Best Recreational Products Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

• Lazydays Holdings Inc stock has a Value Grade of A.
• Twin Vee Powercats Co stock has a Value Grade of A.
• Winnebago Industries, Inc. stock has a Value Grade of B.

Now that you have a bit more background about each of the 3 undervalued stocks in the Recreational Products industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Recreational Products Stocks

Want to learn more about Recreational Products stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

• 3 Undervalued Recreational Products Stocks for Tuesday, September 24
• 4 Undervalued Recreational Products Stocks for Monday, September 23
• 3 Undervalued Recreational Products Stocks for Friday, September 20
• Why LiveWire Group Inc’s (LVWR) Stock Is Down 4.47%

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith and we accept no liability for any errors or omissions. The full disclaimer can be read here.