WGO - not much of a trade here but very solid. Stock forms neat textbook EWs, actually jumped on last ER miss. PE is low, so slam dunk for old high of 58.62. SL of 47.90 (below gap) gives you just above 1:1, but as I say confidence is high
E 52.96, SL 47.90 TP 58.62 RR 1.06
Huge beat on earnings for NYSE:WGO , and a massive 15% move yesterday, which has now resulted in oversold conditions, wait for a pullback and avoid a fomo entry at this level.
13.5 P/E ratio very reasonable
Short interest 13.7% could help sustain the rally.
Earnings transcript
In summary, our strategic transformation over the last 4 fiscal years has led to a...
For the past few decades, a daily close in winnebago below 50% of the recent high, has been a reliable foreshadow of major declines in the broader markets.
Notes on WGO (Positive and negative)
WGO has been on IBD50 several times.
Heavily owned by institutions.
SWS has it undervalued at $42, future cash flow estimates $80/share.
Looks to be forming a consolidation period, generally 7-8 weeks is good timeframe.
RSI line is pretty low at this point.
Winnebago Industries Board of Directors Approve Quarterly...
with a final Wave 5 Ending Diagonal. The 5th wave of the 5th ED is also a Ending Diagonal. This is a most unusual chart that helps to amplify the severe and destructive powers of Ending Diagonals.
This thing has been moving so aggressively such that there is so much overlapping. Couldn't find any way wave 4 would not overlap wave 1 except this multiple diagonals.
With their Earnings coming up and the last 30 days being a strong indicator - I think pushing in 25% on 12/19 with a hold to see what happens before pushing in anymore might be a smart strategy.
WGO is looking bullish on the weekly chart, as the MACD has crossed over on higher bullish volume, as of 5/30/217. WGO rejected the 200dma on 5/31/2017 and rebounded over 10% as of today.
Although the stock is channeling in a bearish trend, the weekly bullish volume may invalidate the channel and finally break it at the .382 FibR on the weekly at $30,...
Looks to be consolidating after a Bearish RSI Divergence. RSI is below it's 8 day moving average. RSI still above 50 though Need to watch for a dip $WGO
Winnebago Industries, Inc. engages in the design, development, manufacture, and sale of motorized and towable recreation products. It operates through the following segments: Grand Design towables, Winnebago towables, Chris-Craft marine, Winnebago motorhomes and Winnebago specialty vehicles. The company was founded on February 12, 1958 and is headquartered in Forest City, IA.
WGO
