Thor Industries, Inc. (THO), Winnebago Industries, Inc. (WGO): Strong Growth Outlook for Recreational Vehicle Companies

Page 1 of 2

Call it a blessing, or a curse, but it is a time-tested fact that consumers in the United States are sensitive to the changing economic scenarios of the country. Now that the economic recovery is being reported in the news more than ever, American consumers are showing a revival in their confidence and the demand for luxury items is increasing.

Recreational Vehicles (RV) have a long history in the United States. The RV industry has its beginning in the 1920s and 1930s, right after the advent of the automobile industry. The RV lifestyle is made up of those people who are interested in travelling rather than living at the same place, and also those who are vacationing. RV sales have increased after the recessionary period as consumers are now willing to commit to large purchases like RVs. The industry includes several companies that are worth a closer look. Thor Industries, Inc. (NYSE:THO) and Winnebago Industries, Inc. (NYSE:WGO) are two companies in the RV industry that have caught my attention. Polaris Industries Inc. (NYSE:PII) is an American snowmobile and ATV manufacturer; however, demand for its products is also affected by the increase in recreational activities, much like that of the RV companies.

Thor Industries, Inc.

Thor Industries, Inc. (NYSE:THO)’s commanding position

Thor Industries, Inc. (NYSE:THO)’s commanding position makes it the largest producer of RVs in the world. The company has been profitable for the last 30 years. Amazingly, its business model allowed it to report a small profit in 2009, when other companies were going off the cliff and reporting huge losses because of the financial meltdown. The company manufactures various types of RVs, small and mid-sized busses, and parts for its products. The company reported record sales of $ 3.1 billion in the year ended 2012.

The majority of the company’s revenues come from the towable RV segment. The company’s sales and earnings have continued to increase in 3Q13 (the company’s fiscal year ends July 31.) Thor Industries, Inc. (NYSE:THO) sold off its ambulance manufacturing company in May 2013 in order to focus on its RV and bus segments. The company’s financial performance has never been better, and I expect it to show robust growth in the quarters to come.

Winnebago Industries, Inc. (NYSE:WGO)’s successful niche

Winnebago Industries, Inc. (NYSE:WGO), though small, is a direct competitor of Thor Industries, Inc. (NYSE:THO), that specializes in the production of motorhomes. For 3Q13, the company reported a mind boggling increase in its financial performance. On a YoY basis, the company’s revenues and net income increased by 40.1% and 94.4% respectively.

Page 1 of 2

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!