Winnebago Industries Inc. stock is trading near its 52-week high, but Zacks Investment Research Inc. sees more stock price gains for Winnebago in the future, so it lists Winnebago as a buying opportunity.
Winnebago closed at $69.90 a share Thursday (Jan. 15) in New York Stock Exchange trading. That is close to its 52-week high of $71.59.
Winnebago announced earlier this week that it would split its shares 2-for-1, effective March 5, which means shareholders of record as of Feb. 20 will get the number of shares they own doubled, although that also will lower the price per share by about half.
Zacks is recommending Winnebago shares because of the company’s strong performance during its first fiscal quarter, which ended in late November. The motorhome manufacturer’s earnings for the September-thorugh-November period were 16% higher than the consensus forecast by Wall Street analysts, Zacks reported.
Also, because dealers and consumers like Winnebago’s 2004 models, which were introduced in the summer, investment analysts believe the company’s profits will continue on an upward trend. Wall Street, on average, has raised its estimate for Winnebago’s fiscal year 2004 earnings by 8% in the last month, Zacks reports.
“Investors may want to pack up some supplies and start on a profitable new journey,” the Zacks firm wrote of Winnebago.