For Immediate Release
Chicago, IL – July 8, 2026 – Zacks Equity Research shares Bassett Furniture Industries, Inc. BSET as the Bull of the Day and Winnebago Industries, Inc. WGO as the Bear of the Day. In addition, Zacks Equity Research provides analysis on FormFactor FORM, Teradyne TER and Cohu COHU.
Here is a synopsis of all five stocks.
Bull of the Day:
Bassett Furniture Industries, Inc. is improving its business model during the soft housing market. This Zacks Rank #1 (Strong Buy) saw written sales for its Memorial Day event jump 14% compared to last year.
Bassett Furniture operates 87 company- and licensee-owned home furnishing stores with free in-home design visits and capabilities in custom furniture design and manufacturing.
It also has a significant wholesale business with more than 1,000 open market accounts. These are done through Bassett Design Centers and Bassett Custom Studios. The wholesale business, including the Lane Venture outdoor brand, also services general furniture stores and a growing number of interior design firms.
Bassett also sells products directly to consumers on its website.
Bassett Furniture Beat on Earnings for Fiscal Q2 2026
On July 1, 2026, Bassett Furniture reported its fiscal second quarter 2026 results and beat on the Zacks Consensus by $0.04. Earnings were $0.24 versus the consensus of $0.20.
It was the first earnings beat in four quarters.
Gross margins rose 90 basis points to 56.5% year-over-year primarily due to higher margins in the Wholesale business offset by lower margins in Retail.
Bassett is still dealing with the soft housing market but it is starting to see some green shoots.
“Retail business was stronger as we moved through the quarter, and Bassett’s Memorial Day event resulted in a 14% increase in written sales and 4% more traffic than last year, said Rob Siplman, CEO.
“We saw these retail trends continue into June, which is a good start for the third quarter. Total written sales were up 9.5% and wholesale orders rose 5.2% for the second quarter,” he added.
The company is making investments during this soft period. It has invested in its website and has seen e-commerce written sales rise 40%, with the average order value increasing 24%. It has increased e-commerce sales by more than 20% in seven of the last eight quarters.
It was also the first positive web traffic since the second quarter of last year.
Analysts Bullish on Bassett Furniture
Is the bottom in earnings in? The last few fiscal years have been tough.
But one analyst has raised earnings estimates for fiscal 2026 and 2027 since the earnings report a week ago.
The fiscal 2026 Zacks Consensus is now calling for $0.84, up from $0.83 before the Q2 earnings report. This is earnings growth of 12% as Bassett made $0.75 last year.
But the most accurate estimate is even more bullish, calling for $0.93 in FY2026.
Analysts expect a housing turnaround next year. The Zacks Consensus is looking for $1.31, which would be growth of 56% over FY2026.
Bassett has been in business for 124 years. It has seen it all. It is managing through this weakness.
Shares of Bassett Furniture Rally Over the Last Month
Many believe the housing market will rebound next year, and that means good things for the furniture industry.
Shares of Bassett Furniture have been on the move, along with the homebuilders, over the last month. It’s outperforming the S&P 500 during that period.
Bassett isn’t a cheap stock on a price-to-earnings (P/E) basis. Investors are diving in now, before earnings really get a chance to ramp back up.
It’s trading with a forward P/E of 23.4. A P/E over 20 is not considered a value.
However, Bassett is shareholder friendly. It pays a dividend, currently yielding an attractive 4.1%, to reward shareholders for their patience.
For investors looking for a way to play the rebound in housing, furniture manufacturer and retailer Bassett Furniture should be on your short list.
Bear of the Day:
Winnebago Industries, Inc. is facing a challenging environment as the consumer is on the sidelines. This Zacks Rank #5 (Strong Sell) recently cut its fiscal 2026 earnings guidance.
Winnebago manufacturers outdoor recreation products under the Winnebago, Grand Design, Chris-Craft, Newmar, and Barletta brands. It builds motorhomes, travel trailers, fifth-wheel products, outboard and sterndrive powerboats, pontoons, and commercial community outreach vehicles.
The company has multiple facilities in Iowa, Indiana, Minnesota, and Florida.
Winnebago Missed on Earnings in Fiscal Q3 2026
On June 25, 2026, Winnebago reported its fiscal third quarter 2026 earnings for the period ending on May 30, 2026, and missed on the Zacks Consensus by $0.16. It reported $0.66 versus the consensus of $0.82, or a miss of 19.5%.
It was the first earnings miss in the last four quarters.
Net revenues fell 9.9% to $698.7 million from $775.1 million a year ago primarily driven by lower unit volume, partially offset by selective price adjustments and product mix.
There was growth in the Motorhome RV segment, but it was partially offset by declines in the Towable RV and Marine segments.
“Our teams continue to execute in a retail environment that remained challenging through the third quarter,” said Michael Happe, CEO.
“Industry retail demand was pressured by broader macro factors, including elevated fuel costs, geopolitical uncertainty, and weak consumer confidence which continued to drive cautious dealer ordering and tighter inventory management across the channel,” he added.
Winnebago Cuts Fiscal 2026 Earnings Guidance
Winnebago expects the environment to remain challenged. It now expects North American RV wholesale shipments in the range of 290,000 to 310,000 units.
As a result, it has lowered its full year fiscal 2026 earnings guidance to the range of $1.65 to $2.00. This is compared to its prior guidance range of $2.10 to $2.80.
“Our outlook reflects a measured view of the environment,” Happe said.
“We expect demand conditions to remain challenged in the near term, with continued variability across segments,” he added.
Analysts Bearish on Winnebago
Not surprisingly, given the company’s guidance cut, the analysts are also bearish.
Four estimates were cut for both FY2026 and FY2027 in the last 30 days.
The fiscal 2026 Zacks Consensus fell to $1.91 from $2.34 during that time. The most accurate estimate is even more bearish at $1.81.
Yet this is still earnings growth of 14.8% as Winnebago made $1.67 in fiscal 2025. However, earnings have declined the prior 3 years.
Analysts were also bearish on next year. The Zacks Consensus on fiscal 2027 has fallen to $2.58 from $2.96 in the last month. But this is still 35.1% growth.
Have earnings hit bottom? Here’s the price and consensus chart.
Shares of Winnebago Fall Further in 2026
Given the dreary outlook on earnings, you can imagine that the shares have suffered over the last few years.
Shares are down further in 2026.
Given the earnings decline, it’s not that cheap on a price-to-earnings (P/E) basis. It now trades with a P/E of 16. A P/E under 15 usually indicates value and a P/E under 10 can indicate deep value.
Winnebago does pay a dividend of $1.40, which is yielding an attractive 4.6%.
But investors might want to stay on the sidelines with Winnebago until the business, and earnings estimates, are turning around.
Additional content:
Can AI Infrastructure Demand Keep Driving FormFactor Stock Higher?
FormFactor is benefiting from the rapid expansion of AI infrastructure, leveraging its leadership in semiconductor probe cards and wafer-level testing technologies. As hyperscalers and chipmakers invest heavily in AI servers, the demand for high-bandwidth memory (HBM), GPUs, networking chips and custom AI accelerators continues to rise, significantly increasing the need for advanced semiconductor testing solutions.
The company is positioned at the intersection of high-performance computing (HPC) and advanced packaging, two of the fastest-growing segments of the semiconductor industry. FormFactor highlighted record revenues from DRAM probe cards, driven by strong HBM demand, while networking applications also delivered robust growth. FormFactor expects another record quarter for DRAM probe cards as customers accelerate the transition from HBM3 to HBM4 and eventually HBM5. The company's proprietary SmartMatrix technology enables simultaneous testing of hundreds of HBM stacks at HBM4 speeds, giving it a competitive advantage as AI memory complexity increases.
AI infrastructure demand is also expanding opportunities beyond memory. FormFactor is seeing increasing demand for probe cards used in networking processors, data center CPUs, GPUs and custom ASICs. Management noted that networking growth helped a leading high-performance computing customer become a 10% customer for the first time, while GPU production qualification is nearing completion, with volume shipments expected in the second half of 2026. The company is also deepening engagements with hyperscalers developing custom AI chips.
FormFactor is also benefiting from the emergence of co-packaged optics (CPO), an important AI networking technology. The company raised its 2026 CPO revenue outlook toward the high end of the previously guided $10-$20 million range, citing faster production ramps and growing demand for Triton production-test systems developed with Advantest and Tokyo Electron. Through its Triton production-test platform and Keystone Photonics acquisition, FORM expects accelerating CPO adoption to become another long-term growth driver. At its Investor Day, FORM management projected that strong demand across HBM, GPUs, networking, custom ASICs and CPO would help double revenue by 2030 while supporting continued market share gains in AI infrastructure.
FORM Faces Tough Competition
FormFactor is facing significant competition from the likes of Teradyne and Cohu.
Teradyne’s leadership in automated test equipment (ATE) is a key catalyst. As AI chip production accelerates, Teradyne’s UltraFLEX and UltraFLEXplus platforms are widely used to test high-performance GPUs, AI accelerators, networking processors and advanced data center semiconductors from leading chipmakers. The company continues to benefit from rising test complexity as larger AI processors require more sophisticated and longer testing cycles. Teradyne’s strong relationships with major semiconductor manufacturers and a broad installed base make it a key player in AI semiconductor manufacturing.
Cohu’s offering of semiconductor test handlers, contactors, interface products and inspection solutions that support the production of AI processors, networking chips and high-performance computing devices has been a major driver. The company has been expanding its capabilities in advanced packaging and high-performance test applications, enabling customers to improve throughput, automation and yield as AI semiconductor complexity continues to increase. Cohu's broad portfolio allows it to participate across multiple stages of semiconductor testing, particularly in high-volume manufacturing environments.
FORM’s Share Price Performance, Valuation & Estimates
Shares of FormFactor have appreciated 97.3% year to date, outperforming the broader Zacks Computer and Technology sector’s rise of 16.6%.
The FORM stock is trading at a premium, with a forward 12-month price/earnings of 47.26X compared with the broader sector’s 24.98X. FormFactor has a Value Score of F.
The Zacks Consensus Estimate for FORM’s 2026 earnings is currently pegged at $2.40 per share, unchanged over the past 30 days, suggesting 84.6% growth from 2025’s reported figure.
FormFactor, Inc. price-consensus-chart | FormFactor, Inc. Quote
FormFactor currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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FormFactor, Inc. (FORM): Free Stock Analysis Report
Cohu, Inc. (COHU): Free Stock Analysis Report
Teradyne, Inc. (TER): Free Stock Analysis Report
Winnebago Industries, Inc. (WGO): Free Stock Analysis Report
Bassett Furniture Industries, Incorporated (BSET): Free Stock Analysis Report
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