#4 - Winnebago (NYSE:WGO)
Another play on the RV industry is Winnebago (NYSE:WGO). This stock is a bit of a mystery. It’s currently trading below its pre-pandemic levels despite the fact that earnings and revenue are well above early 2020 levels. And, unlike Camping World, Winnebago delivered a beat on both the top and bottom lines when it reported earnings in March.
As MarketBeat’s Jea Yu pointed out in April, there are two competing narratives fighting for investors’ attention. Recreational vehicle manufacturers are acutely affected by supply chain difficulties, rising interest rates, and high gas prices. On the other hand, the work-from-anywhere movement is showing no signs of abating, at least for now. And that means that many individuals will be looking to take their office on the road with them.
Is this sustainable? At this time it appears to be the case. This year may represent the high water mark for both revenue and earnings. However, even as that falls, both will still remain well above pre-pandemic levels which ads the long-term bullish case for WGO stock. WGO stock is looking undervalued at the moment with a P/E ratio of around 5.
About Winnebago Industries
Winnebago Industries, Inc manufactures and sells recreation vehicles and marine products primarily for use in leisure travel and outdoor recreation activities. The company operates through three segments: Towable RV, Motorhome RV, and Marine. It provides towable products that are non-motorized vehicles to be towed by automobiles, pickup trucks, SUVs, or vans for use as temporary living quarters for recreational travel, such as conventional travel trailers, fifth wheels, folding camper trailers, and truck campers under the Winnebago and Grand Design brand names.
Read More - Current Price
- $60.88
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 3 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $73.00 (19.9% Upside)
