With more than half of the U.S.’ adult population now vaccinated for COVID-19, many Americans are expected to travel this summer.
While Americans are expected to travel domestically primarily this year, a 47% spike in trans-Atlantic airfare searches indicates that people are interested in travelling to European cities also.
Winnebago Industries, Inc. (WGO)
With multiple facilities in Iowa, Indiana, Minnesota and Florida, WGO is a manufacturer of outdoor lifestyle products used primarily in leisure travel and outdoor recreation activities. The company builds quality motorhomes, travel trailers, fifth wheel products and boats and operates under the Winnebago, Grand Design, Chris-Craft, and Newmar brands.
WGO’s revenue grew 34% year-over-year to $839.9 million in its fiscal second quarter, ended February 27. Its gross profit increased 96.3% year-over-year to $156.6 million for this period. It reported a 237.3% increase in operating income from the year-ago value to $100 million. Its net income increased 300% year-over-year to $69.1 million, and its EPS came in at $2.12, representing a 216.4% increase from the prior-year quarter.
Analysts expect WGO’s revenue to increase 142.5% year-over-year to $839.42 million in the current quarter, ended May 2021. The company’s EPS is expected to increase 776.9% year-over-year to $1.76 in the same period. The stock has gained 16.7% over the past year.
WGO’s POWR Ratings reflect this promising outlook. The company has an overall B rating, which translates to Buy in our proprietary ratings system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting. The stock is rated an A for Growth, and a B for Momentum. Within the Auto & Vehicle Manufacturers industry, it is ranked #20 of 57 stocks.
To see additional POWR Ratings for Value, Sentiment, Stability and Quality for WGO, Click here.
TZOO provides personally reviewed insider deals to more than 30 million members for the purpose of creating unique travel, entertainment, and lifestyle experiences globally. Its publications and products include Travelzoo Website, Travelzoo iPhone and Android apps, Travelzoo Top 20 email newsletter, and the Travelzoo Network. The company serves airlines, hotels, cruise lines, vacations packagers, tour operators, etc.
In the first quarter, ended March 31, 2021, TZOO’s operating expenses decreased 45.7% year-over-year to $10.64 million, while its non-GAAP operating income came in at $622 million, compared to a $1.97 million operating loss in the prior year quarter. The company’s net cash provided by operating activities was $9.06 million, compared to $3.06 million in net cash flow from operating activities in the prior-year period. The company’s cash and cash equivalents increased 402% year-over-year to $72.13 million.
Analysts expect TZOO’s EPS to increase 128.6% year-over-year to $0.06 in the current quarter, ending June 2021. Its revenue is expected to increase 33% year-over-year to $18.33 million in the next quarter. The stock has gained 167.4% over the past year.
It is no surprise that TZOO has an overall B grade, which equates to Buy in our POWR ratings system. It also has an A grade for Quality, and a B grade for Value and Growth. In the 71-stock Internet industry, it is ranked #3.
In total, we rate TZOO on eight different levels. Beyond what we’ve stated above, we have also given TZOO grades for Momentum, Sentiment and Stability. Get all the TZOO ratings here.
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WGO shares were trading at $71.44 per share on Friday afternoon, up $0.62 (+0.88%). Year-to-date, WGO has gained 19.60%, versus a 13.37% rise in the benchmark S&P 500 index during the same period.
About the Author: Samiksha Agarwal
Samiksha Agarwal has always had a keen interest in financial markets. This has led her to a career as a financial journalist. Through her extensive knowledge of fundamental analysis, her goal is to help investors identify untapped investment opportunities in the stock market. More...
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