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Zacks.com: Winnebago is ‘Bull of the Day’ Pick

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March 11, 2013 by   Leave a Comment

Editor’s Note: The following report was issued by Zacks.com today (March 11) identifying Winnebago Industries Inc. as its “Bull of the Day.”

How can you tell the economy is back? Because consumers are buying RVs again. Winnebago Industries, Inc. managed to make it through the Great Recession, gobbling up market share along the way. This Zacks Rank #1 (Strong Buy) is now poised for triple digit earnings growth in 2013 as RV sales rebound.

Winnebago’s brand recognition is so strong that when you think of RVs it’s the first name that comes to mind. Founded in 1958 in Iowa, Winnebago manufactures a variety of recreation vehicles including motorhomes, travel trailers and fifth-wheel products.

Given consolidation in the industry during the Great Recession, Winnebago was able to add to its market share and now has about 20% of the RV market.

Baby Boomers And The Economic Recovery

Motorhome sales peaked in 2004 at 69,000 and plunged during the Great Recession. By 2011, only 25,000 motorhomes were shipped. But that number is expected to slowly rise as the economy improves and the Baby Boomers age.

The key segment of RV buyers is 55 to 64 years of age. The Baby Boomers are just on the cusp of reaching that age range right now with more to come in the next few years. That’s a built-in market for RVs.

Additionally, the stock market has recovered its pre-recession highs and housing is starting to recover, both which will free up cash for Baby Boomers to take to the road.

All of this adds up to good things for the RV manufacturers. The RV and manufactured home industry has a top Zacks Industry Rank of 9 out of 265 industries.

To read the full report click here.

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