RV Stocks on the Rise Following Favorable Economic News – RVBusiness – Breaking RV Industry News
Based on recent economic news regarding the slowing inflation and the Fed holding steady on interest rates at its December meeting — along with recent better-than-expected financial and dividend reports — RV, boat and powersports stocks climbed on Thursday into higher levels than experienced in recent weeks.
Shares of companies that make and sell boats and RVs powered higher Thursday, with many notching new 52-week highs as investors piled in, drawn by hopes that the Federal Reserve would cut interest rates next year.
Led by Camping World’s (CWH) 8.5% increase and followed closely by THOR (THO) and Lippert (LCII) with increases of 7.0%, the RV sector appears to be in a “buy” mode for investors as the year draws to a close.
Shares of boat manufacturer Brunswick rose almost 7%, notching a new 52-week high and moving closer to its all-time high reached in 2021. Rival boat maker Malibu Boats rose 5%, and shares of boat-and-yacht retailer MarineMax also rose 5%.
Other companies that rely on financed sales also got a boost Thursday. Shares of Harley-Davidson jumped 8%, while ATV-and-motorcycle maker Polaris popped 5%.
The relatively positive economic news — along with the RV Industry Association’s (RVIA) recent 2024 forecast of shipments increasing to approximately 350,000 units from 307,000 expected in 2023 — set the stage for investors looking for long-term growth in the cyclical RV Industry.
The RV Industry is finalizing a difficult 2023 as dealers “right-sized” inventories to balance levels with consumer demand, and the 2024 forecasts seem to indicate that most of the dealer inventory reduction is in the rearview mirror and wholesale shipments and retail demand should be marginally equal entering 2024.
– Gregg Fore
Source: https://rvbusiness.com/rv-stocks-on-the-rise-following-favorable-economic-news/