The recreational vehicle industry–those motor homes, all-terrain vehicles (ATVs), snowmobiles, powerboats and their brethren– traditionally takes a mighty hit when the economy tanks, and typically lags during a recovery. But recent signs show that financial strength is picking up for this segment.
Many mid- to large-cap recreational vehicle stocks have been posting strong earnings for the first quarter of 2012. For
instance, Polaris Industries (NYSE: PII) ended the week of April 20 10 percent higher after beating first quarter earnings estimates. As a result, PII received an upgrade in the outlook for the remainder of the year (http://seekingalpha.com/article/517251-polaris-industries-strong-results-and-outlook-boost-the-share-price?source=yahoo).
But the industry has a few notable small-cap representatives as well. Here are a random few:
White Plains, NY-based Drew Industries Inc (NYSE: DW, http://www.drewindustries.com/) manufactures and markets various components for recreational vehicles and manufactured homes in the United States. It operates in two segments: Recreational Vehicle Products (RV) and Manufactured Housing Products (MH). Earnings estimates are $2.19 per share for the year ending December 2013. DW’s revenue is in the $800 million range. The stock has a 52-week range of $17.49 – $30.15, trades about 68,000 shares daily with a market cap about $618 million. ACAT closed April 25 at $27.78, up 90 cents for the day.
Forest City, IA-based Winnebago Industries Inc (NYSE: WGO, http://www.winnebagoind.com/) manufactures and sells recreation vehicles primarily for leisure travel and outdoor recreation activities. The company offers motor homes with a diversified product line. Estimates are $0.47 per share for the year ending August 2013. WGO’s revenue is near $600 million. The stock has a 52-week range of $6.02 – $12.84 with a market cap of about $283 million and average volume of 250,000 shares daily. The stock closed April 25 at $9.67, up 37 cents for the day.
Thief River Falls, MN-based Arctic Cat Inc (Nasdaq: ACAT, http://www.arctic-cat.com) manufactures, and markets snowmobiles and all-terrain vehicles (ATVs) under the Arctic Cat brand name in the United States and internationally. It also offers related parts, garments, and accessories. The earnings estimate is $2.54 for the year ending March 2013, with revenue in the $600 million range. The stock has a 52-week range of $11.55 – $47.46 with an average volume of 250,000 shares daily and a market cap of about $565 million. It closed April 25 at $44.68, up 10 cents on the day.
Jackson Center, OH based Thor Industries Inc (NYSE: THO, http://www.thorindustries.com/) engages in the manufacture and sale of various recreation vehicles, and small and mid-size buses, as well as related parts and accessories in the United States and Canada. It provides a range of travel trailers and motor homes, including Airstream International. The earnings estimate for the year ending July, 2013 is $2.67 per share, with revenue near $3 billion. The stock has a 52-week range of $17.62 – $34.17 with volume more than 400,000 shares daily. THO is at the high end of the small cap range with a $1.7 billion market cap. THO closed April 25 at $32.73, up 74 cents on the day.
Atlanta, GA based Marine Products Corp. (NYSE: MPX, http://www.marineproductscorp.com) engages in the design, manufacture, and sale of recreational fiberglass powerboats in the sport boat, deck boat, cruiser, sport yacht, and sport fishing markets in the United States and internationally. MPX has a 52-week range of $3.12 – $7.75. The stock trades about 50,000 shares daily with a market cap of about $227 million. The stock closed April 25 at $6, up 2 cents on the day.