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Investors.com: RVs Outpacing General Market

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December 28, 2012 by   - () Leave a Comment

Editor’s Note: The following is a breakdown of three key RV stocks by Investors Business Daily.

Somewhere beyond the gloom of Washington’s fiscal cliff standoff, another couple is buying a brand-new, $100,000 motorhome.

Recreational vehicle sales have rumbled to record levels this year, driving stocks like Winnebago Industries Inc. (WGO), Thor Industries Inc. (THO) and Patrick Industries Inc. (PATK) well above the pace of the general market.

Combined, they have since October held the building/mobile/manufactured homes group in a top 20 ranking among the 197 industry groups tracked by IBD.

Winnebago reiterated that status last week, breaking out above a $14.59 buy point to its highest mark since April 2010. The stock ended the week with an 18% gain and 13% above the flat-base buy point.

Shares gapped up last week after the Forest City, Iowa-based company reported a 550% gain in earnings on a 47% revenue jump. Both numbers trounced analyst consensus forecasts.

The motorhome maker said its backlog had tripled over year-ago levels. Management also said it was increasing production, and had been adding employees for the past two quarters to meet demand.

The stock is thinly traded but carries a 97 Composite Rating.

  • Drew Industries Inc. (DW) makes popular slideout mechanisms and other components for motorhomes and trailers. The stock is also thinly traded and holds a best-possible 99 Composite Rating. It jumped 7% last week, clearing a $32.01 buy point.
  • Thor Industries makes a wide range of RVs, with most of its revenue coming from trailers. Its shares surged 12% last week, retaking support at their 10-week moving average. The stock, which holds a 99 Composite Rating, corrected 22% in the five weeks to Dec. 14.
  • Patrick Industries, which makes building and frame components for RVs and manufactured homes, showed little reaction to this week’s news. The stock bolted nearly 400% for the year to mid-October, then fell into a correction. It closed Dec. 21 26% below its October peak.
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