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Winnebago Industries (WGO) Gains As Market Dips: What You Should Know

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Zacks Equity Research
·3 min read
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Winnebago Industries (WGO) closed at $73.61 in the latest trading session, marking a +0.51% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.11%. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, added 0.14%.

Coming into today, shares of the recreational vehicle maker had gained 16.01% in the past month. In that same time, the Construction sector gained 7.05%, while the S&P 500 gained 2.46%.

Wall Street will be looking for positivity from WGO as it approaches its next earnings report date. On that day, WGO is projected to report earnings of $1.37 per share, which would represent year-over-year growth of 104.48%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $801.01 million, up 27.79% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.92 per share and revenue of $3.22 billion, which would represent changes of +129.46% and +36.63%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for WGO. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. WGO is holding a Zacks Rank of #1 (Strong Buy) right now.

Valuation is also important, so investors should note that WGO has a Forward P/E ratio of 12.08 right now. Its industry sports an average Forward P/E of 15.19, so we one might conclude that WGO is trading at a discount comparatively.

The Building Products - Mobile Homes and RV Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 3, putting it in the top 2% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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