Winnebago Industries, Inc. (WGO): One of the Underperforming Stocks Targeted By Short Sellers

We recently published a list of 20 Underperforming Stocks Targeted By Short Sellers. In this article, we are going to take a look at where Winnebago Industries, Inc. (NYSE:WGO) stands against other underperforming stocks targeted by short sellers.

Short interest refers to the percentage of publicly available shares that have been sold short. It is an indicator used by many investors to determine how strong a company’s bear thesis may be. Due to the nature of short selling, the short interest has become a popular indicator among investors.

The reason it is given so much weightage is that people betting against a stock have usually done solid research and are confident of a company’s downfall. They take unlimited risk, so when big investors or the smart money shorts a stock, people take notice. They try to unearth the red flags that may have prompted the high short interest.

We decided to dig deeper and try to find out where smart money sees trouble ahead. To come up with our list of 20 underperforming stocks targeted by short sellers, we looked at the worst-performing stocks of the last six months and then ranked them by the short interest.

Winnebago Industries, Inc. (NYSE:WGO)

Short interest: 15.49%

6 months’ performance: -41.12%

Winnebago Industries, Inc. (NYSE:WGO) operates as a manufacturer and seller of marine products and recreation vehicles. It operates in Motorhome RV, Towable RV, and Marine segments. The company offers towable products, motorhome RVs, mobile office spaces, other specialty commercial vehicles, and various other products.

Winnebago Industries (NYSE:WGO) delivered poor performance in the first quarter of fiscal year 2025. Revenue came in lower than estimates, declining by 18% year-over-year. This revenue decline was driven by lower prices to boost consumer demand and decreasing volumes sold in the RV category.

Regardless of sluggish sales in Q1, Winnebago Industries (NYSE:WGO) maintained its full-year guidance. This is because the business is highly seasonal and less profitable at this time of year. To decrease overhead expenses, Winnebago is cutting its production volume. The company is also consolidating production facilities for Class B RVs. This move is projected to increase long-term earnings. However, it may create short-term challenges for the company, which explains the high short interest.

Overall, WGO ranks 13th on our list of underperforming stocks targeted by short sellers. While we acknowledge the potential of WGO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than WGO but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.