What Happened?
Shares of RV Manufacturer Winnebago (NYSE: WGO) jumped 4.4% in the afternoon session after an analyst at Benchmark maintained a "Buy" rating and a $42.00 price target on the stock ahead of the company's first-quarter earnings report.
The rating was based on Winnebago's strong performance in the previous quarter, where it showed resilience despite difficult market conditions. The analyst noted the company's favorable product mix, effective pricing, and improved margins. Winnebago's last quarterly report also exceeded expectations for sales and earnings, which resulted in a significant stock price increase. The company's cash generation was also described as robust.
After the initial pop the shares cooled down to $41.33, up 3.2% from previous close.
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What Is The Market Telling Us
Winnebago’s shares are very volatile and have had 25 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was about 2 months ago when the stock gained 25.4% on the news that the company reported third-quarter 2025 results that significantly surpassed analyst expectations.
The company posted revenue of $777.3 million, a 7.8% increase from the same period last year and ahead of forecasts. Adjusted earnings per share came in at $0.71, which was a 153.6% jump year-over-year and handily beat consensus estimates. While the company's full-year revenue guidance of $2.85 billion at the midpoint was slightly below Wall Street's expectations, its adjusted earnings per share guidance of $2.35 for the upcoming fiscal year came in ahead of estimates. The strong quarterly performance and upbeat profit forecast appeared to fuel investor confidence.
Winnebago is down 14.2% since the beginning of the year, and at $41.33 per share, it is trading 24.5% below its 52-week high of $54.74 from December 2024. Investors who bought $1,000 worth of Winnebago’s shares 5 years ago would now be looking at an investment worth $694.16.
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