Investors looking to play on the post-pandemic travel and leisure market may want to consider RV manufacturers. As families avoid staying in enclosed rooms of a hotel, traveling in a “bubble” in a personal recreational vehicle to outdoor locations could become a popular activity. Among RV manufacturers, Thor Industries is the largest in the world. It does a majority of its business in the US, with Europe accounting for 30% of the total revenues earned by the company in 2020. Besides Thor Industries, investors can also consider Winnebago Industries. It is the second-largest RV manufacturer by market capitalization in the US.
Thor Reports Positive Q12021 Earnings
Thor Industries reported its first-quarter 2021 earnings in early December 2020. Revenues were up from $2.16 billion in Q12020 to $2.54 billion in Q12021. Net income jumped significantly from $51 million to $113.7 million. Earnings per diluted share was also up from $0.92 in Q12020 to $2.05 in Q12021.
Company CEO Bob Martin said, “We are pleased to report a solid start to our fiscal year with strong year-over-year growth across all of our major metrics, including net sales, gross margin and net income attributable to THOR. Our backlog continued to increase in the first quarter, setting a record, while dealer inventories continued to decline as many of our product shipments are going directly to fill existing end-customer orders. To address the increase in demand, we have increased production levels. Even with our higher production output and deliveries, demand and backlog for our RV products continue to grow.”
Recreational Vehicles Stocks
Thor Industries’ stock is up 144% in the last 5 years. It closed at $121.09 on 5th February 2021. The stock has bounced back strongly from its March 2020 lows by rising more than 240%. Winnebago Industries’ stock also has a strong long term performance. The stock is up more than 300% in the last 5 years. The stock has bounced back 228% since the March 2020 market crash.