The outbreak of the COVID-19 pandemic in the United States last year brought traveling to a halt, compelling people to cancel their vacation plans. However, even when such restrictions started being lifted, people who were stuck at home for a long time, were hesitant to resume their traveling plans via public transport such as flights. Instead, they preferred to travel in their own recreational vehicles (“RVs”) and camping found a new lease of life as it saw renewed interest among people as a convenient way of vacationing with family.
People chose RVs because such vehicles offered them a safer means of travel, with less contact and social distancing. Interestingly, the trend of working and learning remotely also boosted demand for RVs as people could work or learn from anywhere. Notably, a
Boston Herald article cited that per data from LendingTree, interest in RVs has spiked 162% during the pandemic.
However, the situation is improving in the United States, thanks to the rapid progress in the vaccination drive. Even then, the booming demand for RVs looks set to sustain this year as well as Americans continue to go on road trips. Markedly, the Boston Herald article stated that a travel survey by Harvest Hosts found 99% of respondents saying that they felt safe while traveling in an RV. Moreover, 53% of the total respondents stated that they were planning to exclusively travel in RVs in 2021. In fact, a survey by Abacus Data found that the pandemic has created roughly 18 million first-time RV travelers in the United States, as mentioned in an
Reflective of these positive developments and continued interest in RVs, the North American RV market seems ready to witness growth going forward. Markedly, a report by Research and Markets stated that the North American RV market is estimated to witness a CAGR of about 5% between 2021 and 2026, as mentioned in a
Business Wire article. The RV Industry Association stated in a report that total RV shipments for 2021 is likely to be 576,065 units, representing an increase of 33.8% over 2020. 4 Stocks to Buy Now
The booming demand for RVs in the United States is likely to continue this year as people prefer them as a safer form of travel, even as we move beyond the woes of the pandemic. Hence, this seems like an opportune moment to invest in stocks with strong fundamentals that stand to benefit from this continued uptick. Notably, we have handpicked four such stocks that carry a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see
the complete list of today’s Zacks #1 Rank stocks here. Skyline Champion Corporation ( SKY Quick Quote SKY - Free Report) operates as a factory-built housing company in North America and offers manufactured and modular homes, park models RVs, accessory dwelling units, and so on. The company currently has a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings increased 7.4% over the past 60 days. The company’s expected earnings growth rate for the current year is 22.9%. Thor Industries, Inc. ( THO Quick Quote THO - Free Report) designs, manufactures and sells RVs, and related parts and accessories in the United States, Canada and Europe. The company currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings increased 8.7% over the past 60 days. The company’s expected earnings growth rate for the current year is more than 100%. Winnebago Industries, Inc. ( WGO Quick Quote WGO - Free Report) manufactures and sells RVs and marine products primarily for use in leisure travel and outdoor recreation activities. The company currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings increased 0.7% over the past 60 days. The company’s expected earnings growth rate for the current year is more than 100%. Patrick Industries, Inc. ( PATK Quick Quote PATK - Free Report) manufactures and distributes components, building products and materials for the RV, marine, manufactured housing, and industrial markets in the United States and Canada. The company currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings increased 22.5% over the past 60 days. The company’s expected earnings growth rate for the current year is 78.6%. Infrastructure Stock Boom to Sweep America
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