Thor Industries (THO) Stock—The Company You Thought You’d Never Own
I recently wrote about three alternative summer stocks I like for an unprecedented summer given the continued presence of COVID-19 in the United States. My favorite of the three is Thor Industries (THO) stock.
Here’s what I wrote…
Ah, summer. Time to pack your bags and head for the beach, on a cruise, or that tour of Europe you’ve been planning. (Record scratch…) Or not. Not this year, thanks to COVID-19. Instead, Americans are having to get creative with their summer planning, mostly limited to their homes or at least their own states. To make the best of it, people are purchasing items some probably never thought they’d buy.
Never thought of yourself as an RV (recreational vehicle) person? Thousands of people are starting to make the plunge, shelling out for the safety and space of a camper or Winnebago to do a bit of sightseeing at a time when hotels aren’t much of an option.
Thor Industries (THO) Stock
Bloomberg published a detailed article on the concept of “Covid Campers,” outlining the noticeable uptick in RV purchases—particularly among first-time buyers—in the last month. An RV dealer in Austin, Texas reported sales being up 30% this May. Camping World Holdings Inc., a retailer of outdoor equipment and RVs, was one of the rare U.S. companies to beat first-quarter sales estimates. Bookings at Outdoorsy, which is essentially Airbnb for RVs, allowing consumers to rent recreational vehicles, have “skyrocketed,” according to the company’s co-founder.
As RV purchases/rentals have ramped up, production is up too. And that’s why I like Thor Industries (THO) stock, the largest publicly traded RV manufacturer in the U.S. While sales and earnings this year are expected to fall thanks mostly to the six-week hiatus the company had to take at its manufacturing plants, the recent surge could have the company beating estimates (the next earnings report is due out the second week of June).
Meanwhile, the stock is flourishing, having just decisively broken above its February highs…
With plenty of upside left (the stock traded as high as 156 in January 2018), the rebound in THO stock likely isn’t over.