The coronavirus pandemic has brought in unprecedented challenges across every industry. But it seems that the Recreational Vehicle (RV) market has been rather immune to it. In fact, the RV space is on fire lately. The industry is experiencing high demand and sales that have not been witnessed in a long time. While the overall industry suffered due to the COVID-19-induced lockdown measures, RV rentals and sales have been on a roll over the past few weeks.
In fact, President Trump intends to get behind the wheel of an RV and tour the country.”I think I’m gonna buy an RV and travel in an RV with our first lady,” Trump recently said during a news conference at the White House.
RV Seems to be the Safest Bet Amid Coronavirus
With the weather warming up and lockdown restrictions easing, people are now looking for ways to venture out and travel responsibly. While hitting the road seems an exciting idea after a spring spent cooped up, itâ€™s certainly not risk free in view of the pandemic. In the light of the present circumstances, RV vacations are emerging as the best social-distance travel option. Low gas pricesâ€”at about $2 per gallon nationwideâ€” are also making RV trips attractive and easy on the pockets.
With the lifting of shelter-in-place orders, travelers are intending to travel to destinations closer to home for summer trips this year. As air and train travel are becoming less appealing, RVs are gaining momentum. RVs offer just what the people are looking for right now. The freedom and personal control over the travel experience opens up various possibilities for outdoor recreation.
RVs are typically equipped with restrooms, which makes it easier to use them and practice social distancing. Thereâ€™s no need to share a hotel elevator or airplane bathroom. Travelers can cook meals inside the vehicle. RVs are enabling people to enjoy vacations with their families, while still adhering to social distancing.
RV Sales Gain Traction & Outlook Remains Upbeat
The RV market is witnessing strong retail traffic and sales, especially from first-time buyers. With a wide variety of offerings, there is an RV for every consumer at every price point. According to a RV Industry Association spokeswoman, sales from dealers across America skyrocketed as much as 170% year over year in May.
Demand is off the charts. Cruise America â€” the nationâ€™s largest RV rental provider â€” witnessed robust demand last month, almost double from the prior-year period. Business of RVshare also started picking up since mid-April, with sales soaring since mid-May. RVshare saw 1,000% increase in bookings as of May 19 from early April. Its close peer, Outdoorsy, also witnessed a similar surge of bookings to the tune of 1500%.
Itâ€™s not just the RVs that are catching attention now, outdoor supplies in general â€” including fishing and camping gear â€” are also in high demand. RV accessories retailer, Camping World Holdings stated during first-quarter conference call that it is experiencing a spike in sales as people are opting for air carriers over RVs and equipping themselves for long jaunts.
Small- to- medium-sized RVs are emerging as top sellers and are especially popular with first-time buyers. Itâ€™s not just the first-time buyers who are fueling the market; existing users of RVs are also upgrading their vehicles.
The Global RV Market â€” valued at $51.5 billion in 2019 â€” has enjoyed exponential growth since 2008 on the back of rising popularity of van life movement among millennials and changing customer lifestyles. The demand for RVs in luxury camping and travel amenities is likely to keep growing in the future. Towable RVs have been gaining popularity globally and is expected to keep growing in the foreseeable future.
There is pent-up demand, and people are antsy to go outdoors and explore new things. The coronavirus has indeed proven to be a shot in the arm for RV companies. Per a study conducted by the RV Industry Association, 46 million Americans plan to take an RV trip in the next 12 months. This is a boon for RV manufactures and dealers.
â€˜Go RVingâ€™ With These Stocks
The RV industry surely holds promise amid social distancing. Below we have listed four RV stocks you should watch out for.
Winnebago Industries WGO: Over the past month, shares of Winnebago have increased 23.4%. The Zacks Consensus Estimate for fiscal 2021 earnings suggests year-over-year growth of 91.6%. The company currently carries a Zacks Rank #3 (Hold).
Camping World Holdings CWH: Over the past month, shares of Camping World have rallied 47.5%. The consensus mark for fiscal 2020 and 2021 earnings suggests year-over-year growth of 193.9% and 190.6%, respectively. The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of todayâ€™s Zacks #1 Rank (Strong Buy) stocks here.
Thor Industries THO: Shares of Thor have risen 29.3% over the past month. The Zacks Consensus Estimate for fiscal 2021 earnings suggests year-over-year growth of 171.5%. The company currently carries a Zacks Rank #3.
REV Group, Inc. REVG: Shares of REV Group have spiked 56.9% over the past month. The Zacks Consensus Estimate for fiscal 2021 earnings suggests year-over-year growth of 465%. The company currently carries a Zacks Rank #3.
One-Month Price Performance
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Click to get this free report Thor Industries, Inc. (THO) : Free Stock Analysis Report Camping World Holdings Inc. (CWH) : Free Stock Analysis Report Winnebago Industries, Inc. (WGO) : Free Stock Analysis Report REV Group, Inc. (REVG) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research