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Here's How Much You'd Have If You Invested $1000 in Winnebago Industries a Decade Ago

Why investing for the long run, especially if you buy certain popular stocks, could reap huge rewards.

This story originally appeared on Zacks

For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.

- Zacks

FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.

What if you'd invested in Winnebago Industries (WGO) ten years ago? It may not have been easy to hold on to WGO for all that time, but if you did, how much would your investment be worth today?

Winnebago Industries' Business In-Depth

With that in mind, let's take a look at Winnebago Industries' main business drivers.

Winnebago Industries, Inc.  is a leading producer of recreational vehicles in the United States. It has been manufacturing RVs for around 60 years. The motorhomes or RVs are made in the company's vertically integrated manufacturing facilities in Iowa, while the travel trailer and fifth wheel trailers are produced in Indiana. The company distributes its products through independent dealers throughout the United States and Canada.

On November 8, 2016, Winnebago acquired all of the issued and outstanding capital stock of towable RV manufacturer Grand Design for $520.5 million to expand the existing towable RV product offerings and dealer base and acquire additional talent in the RV industry.

With the acquisition of Grand Design, the company expanded the number of reporting segments to two: (1) Motorized products (constituting 45.9% of overall revenues in 2020) and services and, (2) Towable products and services (constituting 51.3% of overall revenues in 2020). The Motorized segment comprises of all products that include a motorized chassis as well as other related manufactured products. The Towable segment includes all products that are not motorized and are generally towed by another vehicle.

In fourth-quarter 2018, following the Chris-Craft deal, the company created a new Corporate / All Other category.

In fact, in June 2018, Winnebago has announced of acquiring pleasure-boat maker Chris-Craft from the London-based private equity firm Stellican Ltd. for an unspecified amount. This acquisition is in sync with Winnebago’s strategy to diversify its portfolio in the outdoor lifestyle market. It also provides the company with a strong base for additional revenue generation.

Notably, Chris-Craft is a top brand with similarities to Winnebago. The companies offer customers with highest-quality products and services. Winnebago’s solid brand, high-quality product line and strong position in the marine market make Chris-Craft a lucrative addition to its portfolio.

Bottom Line

Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Winnebago Industries a decade ago, you're probably feeling pretty good about your investment today.

According to our calculations, a $1000 investment made in August 2011 would be worth $10,262.71, or a 926.27% gain, as of August 25, 2021. Investors should keep in mind that this return excludes dividends but includes price appreciation.

In comparison, the S&P 500 gained 280.96% and the price of gold went up -2.15% over the same time frame.

Analysts are anticipating more upside for WGO.

Winnebago has been riding on the strength of its acquisitions. Notable buyouts including Grand Design and Chris-Craft has bolstered Winnebago's footprint in the outdoor lifestyle market. Newmar buyout has further boosted the firm's portfolio, adding high-end motorized products to the existing Winnebago brand line-up. The company's increasing free cash flow and strengthening balance sheet enables it to consistently enhance shareholder value. Importantly, the Recreational Vehicle (RV) Industry Association forecasts 2021 industry-wide wholesale shipments to be 576,100 units, up 33.8% year over year. Winnebago’s record backlog of new orders across both the segments offers good visibility to growth through fiscal 2021. Amid the given tailwinds, Winnebago is viewed as an attractive bet at the moment. 

The stock is up 6.26% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 1 higher, for fiscal 2021. The consensus estimate has moved up as well.

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Winnebago Industries, Inc. (WGO): Free Stock Analysis Report


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