Equities have been rebounding for the past few weeks in the face of a variety of political and economic challenges. The S&P 500 is now
up 4.25% for the year.
This week's market action was impressive for these two major recreation vehicle makers who are well known in the industry and have established
solid market share.
The leader Winnebago Industries Inc. - WGO and Thor Industries Inc. - THO did well this week. THO reported
earnings for 3rd quarter 2018 which missed earnings estimates but was better than 2017 Q3 earnings by over 20%. THO appears to have not
provided any downbeat outlook - which is a positive. WGO is set to announce Q2 2018 results on June 20th and earnings are expected
to jump Q-o-Q.
Price action on WGO appeared to be better than what was logged for THO this week. WGO crossed above the key 20-week SMA this week which
is a positive. Both these stocks have been in a correction since January 2018 and are trying to consolidate. Fundamentals of both these
companies appear to be respectable.
Investors treat these RV makers like Home Builders. Interest rate moves and expectations highly influence this group and that's the biggest
risk factor here. Nevertheless, if follow through action is impressive for this group in the coming weeks, there may be opportunities
here for self-directed value investors.
Self-directed investors will want to perform more research on these stocks to see how appropriate they are for their own portfolios.
Good Luck and Happy Investing!