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Winnebago (WGO) Advances on Expanded Motorhome Capacity

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On Oct 5, we issued an updated research report on Winnebago Industries, Inc. (WGO - Free Report) .

Winnebago Industries, Inc. is engaged in manufacturing and selling recreation vehicles (RVs) primarily for the use in leisure travel and outdoor recreation activities. The Forest City, IA-based company has been manufacturing RVs for more than five decades now.

The company focuses on improving the quality of its motorhomes and expanding its business. The rise in demand and higher retail activity can be attributed to this uptrend. Winnebago plans to shift the production of select diesel products to the new facility by the second half of 2017. This should help in increasing the production volume of Class A gas and Class C motorhomes. Also, it is anticipated that the the new facility will help increase the production of diesel products if there is a rise in demand in the future.

Winnebago enjoys robust liquidity position and is also in a position to cover operations costs, recover fixed assets, and maintain physical capacity at current levels. The company’s towable segment is performing well, adding to revenues and earnings. It is anticipated that the towable segment will record double-digit growth rate with additional penetration of new products and further expansion of the distribution base.

In the last three months, Winnebago’s shares have outperformed the industry it belongs to. The company’s shares have increased 23.6%, while the industry has grown 22.3%.



Currently, Winnebago sports a Zacks Rank #1 (Strong Buy).

Other top-ranked stocks in the auto space are Toyota Motor Corporation (TM - Free Report) , Volkswagen AG and Daimler AG . While Toyota sports a Zacks Rank #1, Volkswagen and Daimler carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Toyota has an expected long-term earnings growth rate of 7%.

Volkswagen has an expected long-term earnings growth rate of 8.9%.

Daimler has an expected long-term earnings growth rate of 2.8%.

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