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The recreational vehicle market has been on an upswing in recent years as more Americans decide an RV is a better way to see the country. The RV and manufactured home industry group ranked No. 54 out of 197 groups as of Monday. It’s stumbled a bit, down from No. 11 six weeks ago. But it got a boost from the action of one leading member of the group, Drew Industries ( DW ), which reported earnings Monday morning. The stock gapped up and closed for a significant gain on big volume to a new all-time high as a result. Earnings came in at $1.45 a share, a 77% increase from a year earlier. Revenue rose 17% to $422.8 million. Analysts were expecting EPS of $1.03 and revenue of $403 million. EPS growth has been accelerating from 4% to 9%, 61% and 77%, an extremely bullish sign. Drew makes components for RV manufacturers, including doors, axles, mattresses, appliances and furniture. Drew’s earnings report helped boost the group to a strong gain Monday. RV growth is driven by demographics and lifestyle changes. One in 10 vehicle-owning households owns an RV, according to industry statistics. Eleven thousand baby boomers will turn 65 each day for the next 15 years, and they make up the strongest segment of RV owners. More people embrace outdoor activities, and millennials tend to be campers, who eventually end up buying an RV. Drew wasn’t the only stock helping the group to a gain Monday. Thor Industries ( THO ) hit a new high Monday on above-average volume. It’s extended from a 63.09 double-bottom buy point. Thor owns numerous RV brands, including the iconic Airstream brand, along with Dutchman, Heartland, Bison and CrossRoads. It makes both motor homes and travel trailers. It says it holds down costs by assembling RVs and buying components from other manufacturers. Besides Drew, one of those manufacturers is Patrick Industries ( PATK ), which makes components for the RV industry. It broke out of an awkward base without much volume in March. The buy point was 45.41. It’s since made a new high, but pulled back and has recently recovered its 50-day moving average. In its latest earnings report, EPS was 80 cents a share, besting estimates of 70 cents, and a 36% increase from a year earlier. Revenue was $278.63 million vs. estimates of $270 million. Despite the beat, the stock closed down 4.6% that day. The stock has worked its way back near that close. Scalper1 News
Scalper1 News