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Thor Industries (THO) Gains But Lags Market: What You Should Know

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In the latest trading session, Thor Industries (THO - Free Report) closed at $76.72, marking a +1.79% move from the previous day. This move lagged the S&P 500's daily gain of 2.48%. Elsewhere, the Dow gained 1.85%, while the tech-heavy Nasdaq lost 0.09%.

Coming into today, shares of the recreational vehicle maker had lost 9.83% in the past month. In that same time, the Construction sector lost 5.44%, while the S&P 500 lost 7.81%.

Thor Industries will be looking to display strength as it nears its next earnings release. In that report, analysts expect Thor Industries to post earnings of $4.71 per share. This would mark year-over-year growth of 43.16%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.15 billion, up 19.85% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $17.95 per share and revenue of $15.97 billion, which would represent changes of +51.48% and +29.63%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Thor Industries. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.11% lower. Thor Industries is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Thor Industries's current valuation metrics, including its Forward P/E ratio of 4.2. This valuation marks a discount compared to its industry's average Forward P/E of 5.47.

The Building Products - Mobile Homes and RV Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 97, putting it in the top 39% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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