The Construction Products Industry – Mobile Homes & Recreational Vehicle Builders is in the top 2% of industries ranked by Zacks. That’s right.
For most of 2020, when people feared the pandemic, RVs were some of the safe options that allowed people to get outdoors. Many Americans took road trips just like the old days. Now, despite the fact that vaccines are available and most people have had vaccines, this habit, like online shopping and flexible working, seems to have stuck. So instead of demand dropping this year with the grand reopening, it looks like it’s skyrocketed. Most of the large RV providers have reported strong results throughout the year. But the question is, will the good times last?
The RV Industry Association survey for October 2021 shows that total RV shipments ended the month at 57,971 units, an increase of 22.5% from October 2020 and 18% above the previous record of October reached in October 2017. Production also set a record, surpassing the previous one. record of the month by 5%. The industry has already built more RVs this year than any other (and the data for November and December will add to the total). And it was all done despite labor and supply chain problems. Trailer trailers, led by conventional travel trailers, grew 23.3%, motorhomes 14.4% and park model motorhomes 6.3%.
What’s more, a recent survey shows that more Americans plan to ride RVs in the coming year than ever before. According to the survey, 72 million Americans are planning an RV trip next year in an RV they own, rent or borrow, 18% more than the 61 million reported in the same survey a year ago.
The strength in the market is to some extent related to millennials increasingly adopting a mobile lifestyle and the availability of camping grounds in the US is a supporting factor. There is also a growing trend of renting RVs for special events and festivals, which is expanding the use case. The luxury segment looks particularly attractive in this regard. Therefore, rental fleets are expanding rapidly.
Some of the largest RV manufacturers are also in the modular and manufactured home business. This further increases their growth prospects as the home construction market is severely restricted at the moment.
With this backdrop in mind, the following actions deserve a closer look:
Skyline Champion Corporation SKY
Skyline is not a pure RV game, although it does have a leadership position in park-like RVs. It’s actually best known for its factory-built pre-fab homes (# 2 player in the US) and modular home businesses (# 1 player in the US). Its share of the manufactured home market has risen from 8% to 17% in the last 10 years. Skyline also sells Accessory Housing Units (ADUs) and modular buildings for the multi-family housing, hospitality, and senior and worker sectors. Its products are marketed and distributed through a network of company-owned and independent retailers, community operators, government agencies, and commercial developers.
In the year ending March 2022, Skyline is expected to increase its revenues and profits by 47.5% and 117.0% respectively. Growth in the following year is expected to be 11.9% for revenues and 11.5% for earnings. Estimates for the two years rose 64 cents (23.9%) and $ 1.02 (38.1%) in the last 60 days.
Skyline shares have a Zacks rank of n. 1 (strong buy) and an A growth score.
WGO Industries Winnebago
Winnebago Industries is a leading producer of recreational vehicles and marine products sold in the US and Canada. It also manufactures other specialty commercial vehicles tailored to specific requirements, such as law enforcement command centers, mobile medical clinics and mobile offices.
After increasing revenue and profit by 16.0% and 9.9%, respectively, in the year ended August 2022, Winnebago is expected to grow 2.5% and 0.4%, respectively , Next year. Estimates for the two years rose $ 1.26 (15.5%) and 67 cents (7.7%) in the last 60 days.
Winnebago stocks have a # 1 Zacks rank and an A growth score.
Cavco CVCO Industries
Cavco is one of the largest manufactured home producers in the United States and a leading producer of model park recreational vehicles, vacation cabins and system-built commercial structures. There is an additional focus on energy efficiency through passive solar orientation, the use of renewable materials, high indoor air quality through specially designed ventilation systems, and optimal use of space.
In the year ending March 2022, Cavco is expected to experience revenue and earnings growth of 37.0% and 66.2%, respectively. Growth in the following year is expected to be 11.0% and 8.1% respectively. In the last 60 days, the 2022 estimate increased $ 2.01 (17.2%) while the 2023 estimate jumped $ 2.23 (17.7%).
Cavco’s stock has a Zacks # 2 rank and an A growth score.
Patrick Industries PATK
Patrick Industries, Inc. is a leading manufacturer of component products such as decorative vinyl and paper laminate panels, solid surface countertops, granite and quartz, fabricated aluminum products, wrapped vinyls, paper and hardwood profile trim, trim and sliding moldings, cabinet doors and components, fiberglass bathroom fixtures, fiberglass and plastic rudder systems and component products, wiring and wiring harnesses, and polymer-based composite parts and flooring and others. It is also a distributor of construction products and materials for the recreational vehicle, manufactured housing and marine industries. It also serves certain industrial customers.
Patrick’s revenue and earnings are expected to grow 60.0% and 115.7% this year and 7.6% and 10.3% the following year. The 2021 estimate has gone from $ 8.61 to $ 9.06 (4.9% more) in the last 60 days, while the 2022 estimate went from $ 9.53 to $ 9.99 (a 4 , 8% more).
Patrick’s stock has a Zacks # 2 rank and an A growth score.
Thor Industries THO
Thor Industries is the world’s largest manufacturer of recreational vehicles. The company manufactures a variety of recreational vehicles in North America and Europe, and sells those vehicles along with related parts and accessories to independent non-franchise dealers in the US, Canada and Europe.
In the year ending July 2022, analysts expect Thor’s revenue and earnings to grow 14.7% and 14.4% respectively. In 2023, this growth is expected to be 2.5% and 2.5%, respectively. The 2022 estimate is up 19.3% in the last 90 days. The estimate for 2023 has increased by 15.0%.
Thor’s shares have a Zacks rank of n. 2 and an A growth score.
5 actions configured to duplicate
Each was selected by a Zacks expert as the # 1 favorite stock to win + 100% or more in 2021. Previous recommendations have skyrocketed + 143.0%, + 175.9%, + 498.3%, and + 673.0%.
Most of the stocks in this report are flying under the Wall Street radar, providing a great opportunity to break into the ground floor.
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