Trade-Ideas LLC identified

Winnebago Industries

(

WGO

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Winnebago Industries as such a stock due to the following factors:

  • WGO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.1 million.
  • WGO has traded 65,796 shares today.
  • WGO is trading at 2.67 times the normal volume for the stock at this time of day.
  • WGO is trading at a new high 3.00% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on WGO:

Winnebago Industries, Inc. manufactures and sells recreation vehicles primarily for use in leisure travel and outdoor recreation activities. The stock currently has a dividend yield of 1.9%. WGO has a PE ratio of 14. Currently there is 1 analyst that rates Winnebago Industries a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Winnebago Industries has been 274,600 shares per day over the past 30 days. Winnebago has a market cap of $574.9 million and is part of the consumer goods sector and automotive industry. The stock has a beta of 2.10 and a short float of 13.1% with 12.36 days to cover. Shares are up 7.1% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Winnebago Industries as a

hold

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and notable return on equity. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and poor profit margins.

Highlights from the ratings report include:

  • WGO has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.43, which illustrates the ability to avoid short-term cash problems.
  • Net operating cash flow has significantly increased by 58.90% to -$8.06 million when compared to the same quarter last year. Despite an increase in cash flow, WINNEBAGO INDUSTRIES's cash flow growth rate is still lower than the industry average growth rate of 92.02%.
  • WGO, with its decline in revenue, underperformed when compared the industry average of 17.3%. Since the same quarter one year prior, revenues slightly dropped by 4.5%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Automobiles industry average. The net income has decreased by 13.5% when compared to the same quarter one year ago, dropping from $9.90 million to $8.56 million.
  • Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, WGO has underperformed the S&P 500 Index, declining 12.92% from its price level of one year ago. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.

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