#1 - Winnebago (NYSE:WGO)
Citigroup analysts summed it up nicely when they upgraded Winnebago (NYSE:WGO) from Neutral to Buy. According to them, it will be years before there is any “normalcy” in global travel while the appeal of RV lifestyles is here to stay. That sentiment is backed up by comments from Wedbush to the effect Winnebago is benefiting from a number of trends. In their view, the COVID-19 pandemic is only the tip of the iceberg. Consumer habits have changed and driving this company to profits.
The Q3 2020 results are phenomenal. The company not only reported a strong 35% increase in YOY revenue but sales accelerated from the 2nd quarter and the outlook for 2021 is robust. Winnebago’s backlog grew 313% from the year-ago period on strong consumer demand. The strength in sales is providing cost leverage that expanded margins by 390 basis points. That’s big news for a dividend-growth stock like Winnebago.
Winnebago’s 0.90% yield isn’t much to brag about but the 10% payout ratio and 37% CAGR are. With earnings growing like they are we can expect the dividend to continue growing as well.
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
- $62.51
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 3 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $71.80 (14.9% Upside)
