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

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Winnebago Industries (WGO - Free Report) closed at $72.20 in the latest trading session, marking a +1.25% move from the prior day. This change outpaced the S&P 500's 1.31% loss on the day. Elsewhere, the Dow lost 0.39%, while the tech-heavy Nasdaq lost 2.7%.

Coming into today, shares of the recreational vehicle maker had gained 4.24% in the past month. In that same time, the Construction sector gained 3.7%, while the S&P 500 gained 1.32%.

Investors will be hoping for strength from WGO as it approaches its next earnings release. In that report, analysts expect WGO to post earnings of $1.37 per share. This would mark year-over-year growth of 104.48%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $804.14 million, up 28.29% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.94 per share and revenue of $3.24 billion, which would represent changes of +130.23% and +37.35%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for WGO. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.36% higher. WGO is currently a Zacks Rank #1 (Strong Buy).

Digging into valuation, WGO currently has a Forward P/E ratio of 12.01. This represents a discount compared to its industry's average Forward P/E of 14.73.

The Building Products - Mobile Homes and RV Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 2, putting it in the top 1% 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.

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