What Happened?

Shares of RV Manufacturer Winnebago (NYSE:WGO) fell 10.9% in the afternoon session after the company reported disappointing third-quarter earnings results, with revenue, EPS, and adjusted EBITDA falling below Wall Street's estimate. Management highlighted various headwinds, including "uncertain retail conditions, higher inventory carrying costs, and slightly elevated inventories in the motorhome segment, leading to continued dealer hesitancy and increased promotional efforts." Similarly, revenue and EPS guidance for FY'2025 fell below consensus estimates. Overall, it was a weaker quarter for the company.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Winnebago? Access our full analysis report here, it’s free.

What The Market Is Telling Us

Winnebago’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. Moves this big are rare for Winnebago and indicate this news significantly impacted the market’s perception of the business.

Winnebago is down 28.8% since the beginning of the year, and at $52.02 per share, it is trading 30.8% below its 52-week high of $75.14 from December 2023. Investors who bought $1,000 worth of Winnebago’s shares 5 years ago would now be looking at an investment worth $1,056.

Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefitting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.