5 Best RV and Camping Stocks to Buy Now

3. LCI Industries (NYSE:LCII)

Number of Hedge Fund Holders: 19

LCI Industries (NYSE:LCII) provides recreational vehicle components to its manufacturers. The company focuses on Original Equipment Manufacturers (OEM) and Aftermarket segments. The company is currently trading at 5.44x its earnings as of November 1.

In the last three months, three analysts have covered LCI Industries (NYSE:LCII) with two Buy ratings and one Hold with an average price target of $134. On October 5, Truist analyst Michael Swartz maintained a Buy rating on LCI Industries (NYSE:LCII) ‘s shares and lowered the price target to $125 from $135. The price revision was due to rising inflation and a stronger US dollar in the last two months.

Massive dividend payouts make LCI Industries (NYSE:LCII) one of the best RV stocks. The company has increased its dividend for the past six years. As of November 1, the company has a dividend yield of 4.26% compared to the industry average of 1.89%. The latest dividend of $1.05 was paid out on September 16 to the shareholders of record on September 2.

Here is what Fiduciary Management said about LCI Industries (NYSE:LCII) in its Q2 investor letter:

“Several of our stocks have been hit even though the earnings have been solid, the outlook seems fine, and there is nothing to suggest the long-term is compromised. LCI Industries is a poster children for this phenomenon. While we expect some earnings erosion from a recession or slowdown, Booking Holdings Inc. trade at 7.9 times FY2 earnings. Typically, these companies trade at multiples that are 50% higher. Our best guess for “the market” is that we will indeed see earnings estimates come down as the next few quarters unfold. The stock moves suggest something darker than we anticipate and regardless of the nearterm outlook, we believe the franchise values are significantly higher than the stocks would suggest. It looks like an excellent opportunity for investors with a long-term horizon.”