Although advisory firm Zacks Investment Research Inc. believes Winnebago Industries Inc., has a solid financial foundation and a bright future, it recommended today (June 25) that its clients sell their Winnebago stock shares.
“The future should certainly be brighter for Winnebago, but investors may want to think about holding off on a position for the moment until its earnings estimates show more upward mobility,” Zacks said today.
Zacks based its sell recommendation on the fact the motorhome manufacturer recently reported its net earnings declined 48%, to $9.3 million, and its sales revenue slipped 19% lower, to $200.2 million,during the March-through-May period.
Winnebago’s earnings for its third fiscal quarter were 28% below the Wall Street consensus estimate prior to the issuance of the company’s earnings report on June 13, according to Zacks.
Winnebago stock lost more than $2 a share in value on June 13 but recovered during the first half of last week as investors apparently gained optimism about Winnebago’s financial performance in the early stages of model year 2004.
However, Winnebago’s stock price trended lower the last few trading days. On Tuesday (June 24), it closed at $37.60, down 65 cents in New York Stock Exchange trading.
The 52-week high for Winnebago stock is $51.48 a share and its 52-week low is $23.31.