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Winnebago Industries (WGO) Outpaces Stock Market Gains: What You Should Know

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Winnebago Industries (WGO - Free Report) closed at $71.82 in the latest trading session, marking a +1.33% move from the prior day. This move outpaced the S&P 500's daily gain of 0.13%. Meanwhile, the Dow gained 0.05%, and the Nasdaq, a tech-heavy index, lost 0.5%.

Prior to today's trading, shares of the recreational vehicle maker had gained 7.81% over the past month. This has outpaced the Construction sector's gain of 0.61% and the S&P 500's gain of 1.1% in that time.

Investors will be hoping for strength from WGO as it approaches its next earnings release. On that day, WGO is projected to report earnings of $1.37 per share, which would represent year-over-year growth of 104.48%. Our most recent consensus estimate is calling for quarterly revenue 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. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. WGO is holding a Zacks Rank of #2 (Buy) right now.

Valuation is also important, so investors should note that WGO has a Forward P/E ratio of 12.11 right now. For comparison, its industry has an average Forward P/E of 14.84, which means WGO is trading at a discount to the group.

The Building Products - Mobile Homes and RV Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 4, which puts it in the top 2% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow WGO in the coming trading sessions, be sure to utilize Zacks.com.


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