Winnebago Industries (WGO) saw its Relative Strength (RS) Rating rise into a higher percentile on Monday, from 65 to 75. Winnebago stock was down for the day, but the drop doesn’t tell the whole story.
The 10-point jump in its RS Rating for Winnebago stock is impressive but not as much as its other ratings. The stocks that go on to make the biggest gains often have an 80 or better RS Rating as they begin their biggest runs. See if Winnebago Industries can continue to rebound and clear that threshold.
Winnebago Stock Rose As People Went Outdoors To Play
Winnebago makes motor homes and its sales and profits shot up last year as people working from home or laid off sought refuge in the great outdoors, often buying or renting motor homes to travel.
Among other key ratings, Winnebago stock has an 83 Composite Rating, putting it in the top 17% of stocks on a composite of five other IBD ratings. The EPS Rating is one of those five. Winnebago boasts a 94 EPS Rating, on a 1-99 scale. The question now is: Can it keep the momentum going as the economy opens up and people have more recreation opportunities?
In terms of fundamentals, earnings popped 77% last quarter to $2.57. Although that’s still strong growth, it’s down from 132%, 216% and then 931% EPS growth the prior three stanzas. Sales grew 40% in its most recent quarter to $1.04 billion. Look for the next report on or around Dec. 18.
Winnebago shares nearly doubled from a 44.33 low in November a year ago to an 87.53 high on March 17 this year. From there it’s consolidated, mostly moving sideways and holding onto most of those heady gains. On Monday Winnebago stock slid 4% to 71.25.
Winnebago Industries is trying to complete a consolidation with an 87.63 buy point. See if the stock can clear the breakout price in heavy volume.
Peers In The RV Group
Winnebago Industries holds the No. 4 rank among its peers in the Building-Mobile/Manufacturing & RV industry group. Cavco Industries (CVCO) and LCI Industries (LCII) are also among the group’s highest-rated stocks.
As you try to find the best stocks to buy and watch, keep a close on eye on relative price strength.
This proprietary rating measures market leadership by using a 1 (worst) to 99 (best) score that shows how a stock’s price action over the trailing 52 weeks compares to other publicly traded companies.
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