NEW YORK, April 4 (Reuters) - Share prices of Winnebago Industries Inc and Brunswick Corp may reflect increased demand from 'overzealous' investors who believe a hiring upturn will fuel increased leisure spending, newspaper Barron's said in its April 5 edition.
Winnebago's stock has more than quadrupled from its March 2009 low, which may reflect optimism about growing demand for its motor homes, Barron's said.
Shares of Winnebago now trade at what looks like an 'exorbitant' 149 times expected 2010 earnings, and would trade at twice that of the leisure sector even if earnings per share rose to 55 cents in 2011 from an expected 10 cents in 2010, Barron's said.
'Inventory at dealers remains daunting, and baby boomers nursing their nest eggs have watched gas prices climb back toward $3,' the newspaper said. 'Are we expecting another housing boom -- this time on wheels?'
Meanwhile, the stock of recreational boat maker Brunswick has risen more than eightfold since November 2008 and now trades at a decade high of 6.7 times book value as sales recover and dealers work off inventory, the newspaper said.
Analyst Joseph Hovorka of Raymond James said investors are likely to focus more on demand trends, and that Brunswick could face a possible 'faltering' of demand in large markets such as Florida, North Carolina and Texas, Barron's reported.
Brunswick and Winnebago did not immediately return calls on Sunday seeking comment.
In Thursday trading on the New York Stock Exchange, Winnebago shares closed at $14.74 and Brunswick shares at $15.73. The stock market was closed for Good Friday.
(Reporting by Jonathan Stempel; Editing by Leslie Adler) Keywords: WINNEBAGO BRUNSWICK/BARRONS (jon.stempel@thomsonreuters.com +1 646 223 6317; Reuters Messaging: jon.stempel.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Winnebago's stock has more than quadrupled from its March 2009 low, which may reflect optimism about growing demand for its motor homes, Barron's said.
Shares of Winnebago now trade at what looks like an 'exorbitant' 149 times expected 2010 earnings, and would trade at twice that of the leisure sector even if earnings per share rose to 55 cents in 2011 from an expected 10 cents in 2010, Barron's said.
'Inventory at dealers remains daunting, and baby boomers nursing their nest eggs have watched gas prices climb back toward $3,' the newspaper said. 'Are we expecting another housing boom -- this time on wheels?'
Meanwhile, the stock of recreational boat maker Brunswick has risen more than eightfold since November 2008 and now trades at a decade high of 6.7 times book value as sales recover and dealers work off inventory, the newspaper said.
Analyst Joseph Hovorka of Raymond James said investors are likely to focus more on demand trends, and that Brunswick could face a possible 'faltering' of demand in large markets such as Florida, North Carolina and Texas, Barron's reported.
Brunswick and Winnebago did not immediately return calls on Sunday seeking comment.
In Thursday trading on the New York Stock Exchange, Winnebago shares closed at $14.74 and Brunswick shares at $15.73. The stock market was closed for Good Friday.
(Reporting by Jonathan Stempel; Editing by Leslie Adler) Keywords: WINNEBAGO BRUNSWICK/BARRONS (jon.stempel@thomsonreuters.com +1 646 223 6317; Reuters Messaging: jon.stempel.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.