Is Winnebago Stock Worth the Risk?

WGO toppled down nearly 40% in the past year

facebook X logo linkedin


Winnebago Industries, Inc. (NYSE:WGO) is an American manufacturer of outdoor lifestyle products under the Winnebago, Grand Design, Chris-Craft, Newmar, and Barletta brands. WGO products are used primarily in leisure travel and outdoor recreation activities. The company builds motorhomes, travel trailers, fifth-wheel products, pontoons, powerboats, and commercial community outreach vehicles.

On April 18, the outdoor lifestyle company announced a partnership with Make-A-Wish and RV Retailer to provide outdoor activities to children across the United States. The partnership and inaugural program will look to fulfill wishes for children with critical illnesses, per Make-A-Wish's mission statement.

Winnebago stock has decreased about 33% in price year-over-year and WGO is currently trading down 37% since reaching an all-time high of $85.15 last May. Additionally, shares of WGO have dropped in price 29% year-to-date and Winnebago stock is currently up just 5% from their 52-week low of $51.29 reached earlier this month.

Winnebago Industries also offers a dividend yield of 1.36% with a forward dividend of $0.72. Winnebago stock also provides a very intriguing valuation. At a market cap of $1.76 billion, WGO trades at an incredibly low forward price-earnings ratio of 4.97 and a solid price-sales ratio of 0.44. Winnebago is also expected to produce significant growth for fiscal 2022, with estimates indicating a 44% increase in earnings and a 29% increase in revenues.

However, Winnebago’s fundamentals offer very minimal safety for long-term investors. The outdoor lifestyle business holds just $134.83 million in cash and $579.41 million in total debt on their balance sheet. In addition, estimates for fiscal 2023 have WGO dropping earnings by 18.2% and revenues by 6.5%, eating away a good portion of their expected growth for fiscal 2022.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI