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published in Blogs
Jan 04, 2019

What is Helping Thor Industries (THO, $53.84) Attract Investor Attention?

Recreational vehicle manufacturer, Thor Industries, posted a unique year-end result when it came to sales figures. Even after reporting record sales in spring and summer, the company’s year-over-year sales declined 21% to $1.8 billion in the first quarter of fiscal 2019, while gross margin slipped roughly 3% to 11.8%. These losses arguably stemmed from Thor’s optimistic promotional discounts that resulted in in its double-digit sales declines. Thor lost 65% of its value in CY 2018, whereas its competitor Winnebago Industries (WGO) lost ~55%.

Even still, the company enters the new calendar year with much hope to attract investors. But how?

In new year, Thor focused on improving its ability to adjust production and meet variable market demands. To enhance its manufacturing capacity, Thor allocated $253 million in capital expenditure over the last two fiscal years. Further, management has also predicted that dealer inventories should normalize by the end of 2018, and wholesale shipments in the industry should soon return to a one-to-one relationship with retail sales.

These factors helped Thor attract valuable investors who are willing to patiently build a position.  

Currently trading at a discount of 42% against a peer group comprised of stocks in the S&P 400 MidCap Index, the market value of Thor's stock is approaching the company's book value – according to analysts a timely indication for value investors to build position.

Furthermore, Thor is yet to close its pending acquisition of the German RV manufacturer Erwin Hymer Group, which will add $2.9 billion in annual sales to Thor’s operation that could potentially make Thor world’s largest RV manufacturer. Making matters even better, Thor’s debt-free balance sheet and a sizable order backlog is expected to keep business moving solidly in the future.

Related Ticker: THO

THO in upward trend: 10-day moving average broke above 50-day moving average on May 13, 2025

The 10-day moving average for THO crossed bullishly above the 50-day moving average on May 13, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 13 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

The Momentum Indicator moved above the 0 level on April 22, 2025. You may want to consider a long position or call options on THO as a result. In of 80 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .

THO moved above its 50-day moving average on May 12, 2025 date and that indicates a change from a downward trend to an upward trend.

Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where THO advanced for three days, in of 315 cases, the price rose further within the following month. The odds of a continued upward trend are .

The Aroon Indicator entered an Uptrend today. In of 193 cases where THO Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .

Bearish Trend Analysis

The 10-day RSI Indicator for THO moved out of overbought territory on May 21, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 27 similar instances where the indicator moved out of overbought territory. In of the 27 cases, the stock moved lower in the following days. This puts the odds of a move lower at .

The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 60 cases where THO's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .

Following a 3-day decline, the stock is projected to fall further. Considering past instances where THO declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .

THO broke above its upper Bollinger Band on May 12, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.

The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.574) is normal, around the industry mean (51.504). P/E Ratio (23.008) is within average values for comparable stocks, (57.389). Projected Growth (PEG Ratio) (0.839) is also within normal values, averaging (2.636). Dividend Yield (0.016) settles around the average of (0.053) among similar stocks. P/S Ratio (0.602) is also within normal values, averaging (5.311).

The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.

The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. THO’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. THO’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 87, placing this stock better than average.

The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

Notable companies

The most notable companies in this group are Harley-Davidson (NYSE:HOG), YETI Holdings (NYSE:YETI), Peloton Interactive (NASDAQ:PTON), MasterCraft Boat Holdings (NASDAQ:MCFT).

Industry description

The Leisure and Recreation Products industry includes companies offering recreational goods/services such as video games, swimming pools, golf courses, boats, outdoor spaces etc. Since these are mainly geared towards consumers, strong employment conditions and healthy incomes generally augur well for the recreational products industry. Some of the largest market caps in this space belong to video game developers (e.g. Activision Blizzard, Electronic Arts and Take-two Interactive), and toy /board game makers (like Hasbro).

Market Cap

The average market capitalization across the Recreational Products Industry is 5.28B. The market cap for tickers in the group ranges from 5.94K to 63.42B. OLCLY holds the highest valuation in this group at 63.42B. The lowest valued company is CLUBQ at 5.94K.

High and low price notable news

The average weekly price growth across all stocks in the Recreational Products Industry was -0%. For the same Industry, the average monthly price growth was 6%, and the average quarterly price growth was -9%. FXLV experienced the highest price growth at 50%, while GDHG experienced the biggest fall at -67%.

Volume

The average weekly volume growth across all stocks in the Recreational Products Industry was 10%. For the same stocks of the Industry, the average monthly volume growth was -8% and the average quarterly volume growth was -6%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 54
P/E Growth Rating: 59
Price Growth Rating: 59
SMR Rating: 74
Profit Risk Rating: 86
Seasonality Score: 31 (-100 ... +100)
Related Portfolios: MID CAP GROWTH ETFs
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General Information

a manufacturer of motor homes, trailers and buses

Industry RecreationalProducts

Profile
Fundamentals
Details
Industry
Recreational Products
Address
601 East Beardsley Avenue
Phone
+1 574 970-7460
Employees
24900
Web
https://www.thorindustries.com