The following are today's upgrades for Validea's Growth Investor model based on the published strategy of Martin Zweig. This strategy looks for growth stocks with persistent accelerating earnings and sales growth, reasonable valuations and low debt.
WINNEBAGO INDUSTRIES, INC. (WGO) is a small-cap growth stock in the Mobile Homes & RVs industry. The rating according to our strategy based on Martin Zweig changed from 46% to 85% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Winnebago Industries, Inc. is a manufacturer of a portfolio of recreation vehicles (RV) and marine products used primarily in leisure travel and outdoor recreation activities. The Company produces its motorhome units in manufacturing facilities in Iowa and Oregon; its towable units in Indiana; and its marine units in Florida. Its segments include Motorhome, Towable and Corporate / All Other. Its Motorhome segment is comprised of products that include a motorized chassis, as well as other related manufactured products and services. Its Towable segment is comprised of products which are not motorized and are generally towed by another vehicle, as well as other related manufactured products and services. The Corporate / All Other category includes the Winnebago specialty vehicles and Chris-Craft marine operating segments as well as expenses related to certain corporate administration expenses for the oversight of the enterprise.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
|REVENUE GROWTH IN RELATION TO EPS GROWTH:||PASS|
|SALES GROWTH RATE:||PASS|
|CURRENT QUARTER EARNINGS:||PASS|
|QUARTERLY EARNINGS ONE YEAR AGO:||PASS|
|POSITIVE EARNINGS GROWTH RATE FOR CURRENT QUARTER:||PASS|
|EARNINGS GROWTH RATE FOR THE PAST SEVERAL QUARTERS:||FAIL|
|EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN PRIOR 3 QUARTERS:||PASS|
|EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE:||PASS|
|LONG-TERM EPS GROWTH:||PASS|
|TOTAL DEBT/EQUITY RATIO:||FAIL|
Detailed Analysis of WINNEBAGO INDUSTRIES, INC.
About Martin Zweig: During the 15 years that it was monitored, Zweig's stock recommendation newsletter returned an average of 15.9 percent per year, during which time it was ranked number one based on risk-adjusted returns by Hulbert Financial Digest. Zweig has managed both mutual and hedge funds during his career, and he's put the fortune he's compiled to some interesting uses. He has owned what Forbes reported was the most expensive apartment in New York, a $70 million penthouse that sits atop Manhattan's Pierre Hotel, and he is a collector of all sorts of pop culture and historical memorabilia -- among his purchases are the gun used by Clint Eastwood in "Dirty Harry", a stock certificate signed by Commodore Vanderbilt, and even two old-fashioned gas pumps similar to those he'd seen at a nearby gas station while growing up in Cleveland, according to published reports.
About Validea: Validea is an investment research service that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.