How does the stock of Winnebago, which had lower growth for both sales and earnings last quarter, have five higher closes in a row? Apparently investors see the potential for the RV maker to rise as the pandemic wanes and springtime nears. On Wednesday, the Relative Strength Rating for Winnebago stock climbed to 73, up from 66 the day before.
The higher rating shows that Winnebago stock is outperforming 73% of all stocks in IBD's database. That's a bullish indicator, but the stock watchlist candidate has more work to do. The best stocks to buy and watch tend to have an RS Rating above 80 in the early stages of their moves. See if Winnebago can continue to show renewed price strength and clear that threshold.
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Winnebago Stock Popular With Big Money Investors
Among its other pertinent ratings, Eden Prarie, Minn.-based Winnebago has a 78 Earnings Per Share Rating, and a 77 Composite Rating. A bright spot is its B- Accumulation/Distribution Rating on an A+ to E scale. The B- rating indicates that big money investors like ETFs and mutual funds are moderately heavy buyers of its stock.
Winnebago stock rose 0.6% to 62.33 on Wednesday, a mixed day for the market with indexes posting mild moves up and down but not really moving much. The maker of motor homes and RVs is building a consolidation with a 68.43 buy point. See if it can clear the breakout price in volume at least 40% above average.
Strong Numbers, Then A Pause
Winnebago reported a 41% drop in earnings to $2.07 per share last quarter on an 18% dip in revenue to $952.2 million. However, the prior three quarters it posted EPS gains of 42%, 84% and 14%. The fourth quarter dip may have been due to tough comps against a strong quarter a year ago. The same pattern held true for revenue, which grew 39%, 52% and then 14% before taking a breather.
Winnebago earns the No. 5 rank among its peers in the Building-Mobile/Manufacturing & RV industry group. Cavco Industries and Skyline Champion are also among the group's highest-rated stocks.
IBD's unique Relative Strength Rating tracks price performance with a 1 (worst) to 99 (best) score. The grade shows how a stock's price movement over the trailing 52 weeks holds up against all the other stocks in our database.
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