We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Winnebago (WGO) Moves 7.7% Higher: Will This Strength Last?
Read MoreHide Full Article
Winnebago Industries (WGO - Free Report) shares soared 7.7% in the last trading session to close at $78. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 0.1% loss over the past four weeks.
Shares of the recreational vehicle (RV) maker jumped on Friday as strong demand for RVs prompted BMO Capital Markets to raise its price target on Winnebago, while maintaining its 'Outperform' rating on the stock. Even after stepped-up vaccinations, safety remains at the top of mind for most Americans, which has sustained the RV momentum. In fact, demand for campers, motorhomes and other RVs are off the charts, resulting in massive backlog for Winnebago. The company is also riding on the strength of its buyouts including Newmar and Barletta. However, while robust demand bodes well, rising input costs and shortage of RV components amid global supply crunch may pose near-term hiccups for Winnebago.
This RV maker is expected to post quarterly earnings of $1.98 per share in its upcoming report, which represents a year-over-year change of +36.6%. Revenues are expected to be $936.32 million, up 26.9% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Winnebago, the consensus EPS estimate for the quarter has been revised marginally lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on WGO going forward to see if this recent jump can turn into more strength down the road.
Image: Bigstock
Winnebago (WGO) Moves 7.7% Higher: Will This Strength Last?
Winnebago Industries (WGO - Free Report) shares soared 7.7% in the last trading session to close at $78. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 0.1% loss over the past four weeks.
Shares of the recreational vehicle (RV) maker jumped on Friday as strong demand for RVs prompted BMO Capital Markets to raise its price target on Winnebago, while maintaining its 'Outperform' rating on the stock. Even after stepped-up vaccinations, safety remains at the top of mind for most Americans, which has sustained the RV momentum. In fact, demand for campers, motorhomes and other RVs are off the charts, resulting in massive backlog for Winnebago. The company is also riding on the strength of its buyouts including Newmar and Barletta. However, while robust demand bodes well, rising input costs and shortage of RV components amid global supply crunch may pose near-term hiccups for Winnebago.
This RV maker is expected to post quarterly earnings of $1.98 per share in its upcoming report, which represents a year-over-year change of +36.6%. Revenues are expected to be $936.32 million, up 26.9% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Winnebago, the consensus EPS estimate for the quarter has been revised marginally lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on WGO going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>