UNITED STATES — Investors in the growing recreational vehicle sector had reason to feel optimistic prior to a recent decline, reported Forbes.
Shares of the two best-known U.S. RV stocks, Thor Industries and Winnebago were up 170 percent and 180 percent, respectively over the past two years. Shares of leading retailer Camping World Holdings had doubled in price since its 2016 IPO. But then, at the end of 2017, all three of these stocks fell out of bed. Shares of both THO and WGO have lost more than a third of their value, while Camping World Holdings was down by more than half.
Despite concerns about steel and aluminum tariffs, demand for RVs remains strong. While interest rates and hence borrowing costs are up, the main reason for the weak share prices appears to be that valuations had gotten ahead of where they should have been, particularly in light of an industry characterized by booms and busts. Further, improving consumer confidence and RV sales to younger buyers appear to have re-ignited these stocks and a full blown rally may be afoot.
Read the full Forbes article here.