Hit the Road, Zack: Millennials Discover RVs

Discussion in 'Luxury and Lifestyle' started by truetype, Nov 27, 2017.

  1. truetype

    truetype

    PREVIEW Hit the Road, Zack: Millennials Discover RVs
    November 25, 2017

    Road Trip: Recreational-vehicle sales have been growing rapidly and have
    already surpassed their mid-2000s peak. (.. )

    “Everyone knew about retiring baby boomers, but this is the incremental
    consumer that has been driving the market,” says BMO Capital Markets
    analyst Gerrick Johnson, who notes a similar trend with boat sales.
    Buying a $15,000 trailer and parking it at a campground all summer is a
    lot cheaper than renting a lake house year after year, he notes.
    Families are even bringing them to weekend soccer tournaments.

    RV sales have been growing rapidly and have already surpassed their
    mid-2000s peak. RV dealer Camping World Holdings
    http://barrons.com/quote/stock/CWH could be the biggest beneficiary of
    the trend. The company “not only sells the units, but also can capture
    high-margin service revenue,” Johnson says. Young adults who are buying
    their first RVs or trailers often finance their purchases and are more
    likely to pay for servicing, rather than doing it themselves.

    Shares of Thor Industries http://barrons.com/quote/THO, which makes
    entry-level RVs and trailers, have risen 37% this year on strong sales
    growth. Winnebago Industries http://barrons.com/quote/WGO, whose stock
    is also up sharply, designs more-upscale products and is poised to
    benefit as RV owners trade up. Johnson says that 70% of first-time
    buyers opt for a second unit. (.. )
     
  2. vanzandt

    vanzandt

    These stocks are trading at too high of a multiple.
    fwiw
    Short THO at $142 after hours.