July 5, 2018

WGO – Management’s confidence about their costs and ability to compete imply that market expectations are overly bearish, suggesting that longer-term upside remains warranted

  • Winnebago Industries, Inc. (WGO:USA)currently trades near historical lows relative to UAFRS-based (Uniform) Earnings, with a 10.8x Uniform P/E. At these levels, markets have bearish expectations for the firm, despite bullish expectations from analysts, and given management’s confidence about their costs and ability to compete, further upside may be warranted
  • Specifically, management is confident about their ability to compete more effectively in the value side of their business, and in the benefit of tax cuts. Moreover, they are confident in their ability to assess and act on changes in input prices as well as their ability to improve makeup of vehicles to offset rising input costs
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