About the RV Industry Getting Clobbered

S

SeekingZinni

How much worse can it get? I'm not piling money in here to buy more because I don't know, but the valuations are good enough for me to stay in here.

Why is it so bad? It sounds like a few months ago the projection were that the industry would be down 5% to 10%+ this year. With high gas prices coming in recently this seems to have beaten everyone down pretty bad. I hold onto WGO, CWH, PATK.

Of all of these stocks I like CWH the best in a downturn because of growing efforts on the used RV side of the industry.

Today this industry beat the markets. This isn't uncommon for this group to trade against the markets lately, but at this point I'd hope that things may be near a bottom so this is a welcome sign. The P/E ratio is just too cheap depending on what you project for the future.

Is the bottom here near?
 
I haven’t followed the RV industry since 2020 when I first was looking at buying an RV tier 2 supplier and then looking at doing surplus work for the tier 1’s. They were going bananas on low interest rates, demographics, and then Covid demand as entertainment.

They are the most descretionary purchase in America and typically have the same return profile as a timeshare. so it’s possible that demographics are saturated and higher interest rates mean less available financing and less Covid means more flying and less driving.
 
I don't know your strategy but even if one believes in a company, two simple lines could have saved an investor $5-10/share

upload_2022-4-23_11-8-33.png
 
SeekingZinni said:
How much worse can it get? I'm not piling money in here to buy more because I don't know, but the valuations are good enough for me to stay in here.

Why is it so bad? It sounds like a few months ago the projection were that the industry would be down 5% to 10%+ this year. With high gas prices coming in recently this seems to have beaten everyone down pretty bad. I hold onto WGO, CWH, PATK.

Of all of these stocks I like CWH the best in a downturn because of growing efforts on the used RV side of the industry.

Today this industry beat the markets. This isn't uncommon for this group to trade against the markets lately, but at this point I'd hope that things may be near a bottom so this is a welcome sign. The P/E ratio is just too cheap depending on what you project for the future.

Is the bottom here near?
More...
upload_2022-4-23_18-15-53.png
 
Honestly, I have never looked at RV stocks. But I find this post interesting because I was driving home from Florida a few weeks ago and passed a large RV dealer (maybe in Tennessee?) and couldn't believe how much inventory they were sitting on - just "seemed" to be a lot. And if demand is slowing and financing more challenging, could be more pain ahead.
 
Didn't see a chart I liked there.
Apparently a lot of people turned to RVing during Covid. That probably means that there will be a lot of used RVs for sale as things get back to normal. Doesn't bode well for the industry.
 
You must log in or register to reply here.
Back
Top