Stocks of Winnebago and Thor Industries plunged in heavy volume Friday, extending recent losses as an analyst raised concerns over dealer inventories. Northcoast Research lowered both stocks to a neutral rating from buy due to concerns that dealer inventory is at an “unsustainable level” for 2018.
Winnebago fell 8.4 percent on the stock market Friday, preceded by an 8 percent drop on Thursday, losing sight of its 50-day moving average. Thor Industries plunged 7.7 percent Friday, joining Winnebago below its 50-day line.
According to Investors Business News, if a stock breaks below the 50-day line in heavy volume after a long run and can’t rally back, it’s often a signal that buying demand is drying up and the stock’s run is ending. Investors may want to take at least partial profits to protect their gains after both stocks outperformed the market in 2017.
Read the complete story at Investors Business News.
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