In this article, we discuss the 5 best RV and camping stocks. To read the industry analysis, you can go directly to the 10 Best RV and Camping Stocks.
5. MasterCraft Boat Holdings, Inc. (NASDAQ:MCFT)
Number of Hedge Fund Holders: 15
MasterCraft Boat Holdings, Inc. (NASDAQ:MCFT) is a recreational vehicle company that manufactures and sells recreational power boats. Our database shows that 15 hedge funds had a stake in the company in the second quarter of 2022, and Coliseum Capital was the most significant stakeholder in the quarter. After an increase in its holdings in the company by 31%, the firm owned 1.67 million MasterCraft Boat Holdings, Inc. (NASDAQ:MCFT) shares, valued at $35.16 million.
On October 25, Stifel analyst Drew Crum maintained a Buy rating on MasterCraft Boat Holdings, Inc. (NASDAQ:MCFT)’s shares and lowered the price target to $29 from $31. Crum predicts a “solid start to the fiscal year, with record FY1Q sales and earnings” for the company.
4. Fox Factory Holding Corp. (NASDAQ:FOXF)
Number of Hedge Fund Holders: 16
Fox Factory Holding Corp. (NASDAQ:FOXF) is an auto parts manufacturer. The company produces mid- and high-end suspensions for all vehicles, including mountain bikes and recreational vehicles.
On October 5, Truist analyst Michael Swartz reiterated a Buy rating on Fox Factory Holding Corp. (NASDAQ:FOXF)’s shares and lowered the price target to $108 from $130. One of the reasons for price target revision is the worries around the general macro environment and consumer spending uncertainties. According to the analyst, these factors are likely to pressure the near-term earning outlooks of the recreation and leisure segment.
Fox Factory Holding Corp. (NASDAQ:FOXF) is one of the best RV stocks due to its past financial performance. In the last 5-years, the company managed to maintain an annual earnings growth of 26.7% compared to the industry average of 12.2%. Furthermore, in the previous twelve months, Fox Factory Holding Corp. (NASDAQ:FOXF) experienced a 20.7% earnings growth compared to the average industry decline of 17.5%.
Here is what Polen Capital had to say about Fox Factory Holding Corp. (NASDAQ:FOXF) in its Q1 2022 investor letter:
“We believe Fox Factory is in good fundamental shape. Its management team is clear and consistent about what will drive value and durable growth for its business that is best known for its off-road racing suspension products. Despite supply chain, COVID-19, and operational challenges, the company has been one of our top performers since inception. We added to our position over the quarter, given what we believed to be the company’s attractive valuation.”
3. LCI Industries (NYSE:LCII)
Number of Hedge Fund Holders: 19
LCI Industries (NYSE:LCII) provides recreational vehicle components to its manufacturers. The company focuses on Original Equipment Manufacturers (OEM) and Aftermarket segments. The company is currently trading at 5.44x its earnings as of November 1.
In the last three months, three analysts have covered LCI Industries (NYSE:LCII) with two Buy ratings and one Hold with an average price target of $134. On October 5, Truist analyst Michael Swartz maintained a Buy rating on LCI Industries (NYSE:LCII) ‘s shares and lowered the price target to $125 from $135. The price revision was due to rising inflation and a stronger US dollar in the last two months.
Massive dividend payouts make LCI Industries (NYSE:LCII) one of the best RV stocks. The company has increased its dividend for the past six years. As of November 1, the company has a dividend yield of 4.26% compared to the industry average of 1.89%. The latest dividend of $1.05 was paid out on September 16 to the shareholders of record on September 2.
Here is what Fiduciary Management said about LCI Industries (NYSE:LCII) in its Q2 investor letter:
“Several of our stocks have been hit even though the earnings have been solid, the outlook seems fine, and there is nothing to suggest the long-term is compromised. LCI Industries is a poster children for this phenomenon. While we expect some earnings erosion from a recession or slowdown, Booking Holdings Inc. trade at 7.9 times FY2 earnings. Typically, these companies trade at multiples that are 50% higher. Our best guess for “the market” is that we will indeed see earnings estimates come down as the next few quarters unfold. The stock moves suggest something darker than we anticipate and regardless of the nearterm outlook, we believe the franchise values are significantly higher than the stocks would suggest. It looks like an excellent opportunity for investors with a long-term horizon.”
2. Winnebago Industries, Inc. (NYSE:WGO)
Number of Hedge Fund Holders: 20
Winnebago Industries, Inc. (NYSE:WGO) is an American motorhome manufacturer. Moreover, the company has recently decided to take a bite out of the marine industry market share. It acquired Chris-Craft Corporation in 2018 and Barletta Pontoon Boats in 2021. Winnebago Industries, Inc. (NYSE:WGO) has become the fifth largest pontoon boat manufacturer with the Barletta acquisition.
As of November 1, Winnebago Industries, Inc. (NYSE:WGO) is trading at an earnings multiple of 5.1. The company’s current PE ratio is significantly below its five-year average of 13.97, which provides ample buying opportunities for investors.
Winnebago Industries, Inc. (NYSE:WGO) is one of the best RV stocks because of its focus on shareholder returns. In mid-August, the company increased its dividend by 50% to $0.27, bringing its 3-year dividend CAGR to 27%. Furthermore, Winnebago Industries, Inc. (NYSE:WGO)’s board of directors approved a $350 million share repurchase program after the depletion of the previous repurchase program of $200 million.
1. Patrick Industries, Inc. (NASDAQ:PATK)
Number of Hedge Fund Holders: 21
Patrick Industries, Inc. (NASDAQ:PATK) manufactures and sells appliances, furnishing, and fixture services for recreational vehicles and marine manufactured housing. As of November 1, the company has a dividend yield of 2.89% at an annualized rate of $1.32. Furthermore, Patrick Industries, Inc. (NASDAQ:PATK) returned $7 million to its shareholders through buybacks in the third quarter of 2022.
For Q3 2022, Patrick Industries, Inc. (NASDAQ:PATK) recorded a 5% increase in net sales to $1.11 billion despite a decline of 40% in RV OEM shipments. According to the management, the acquisitions of Williamsburg Furniture in 2021 and Diamondback Marine and Rockford Fosgate purchases in 2022 were responsible for offsetting the $110 million decline in RV revenues. Patrick Industries, Inc. (NASDAQ:PATK) also reported a 2% YoY increase in net income to $59 million and a 14% increase in gross profit to $236 million.
According to our database, 21 hedge funds held a position in Patrick Industries, Inc. (NASDAQ:PATK) at the end of Q2 2022, compared to 20 in the previous quarter. Millennium Management increased its holdings by a staggering 909% and was the most significant shareholder in the company. The firm owned 384,664 million company shares, worth $19.941 million.
You can also take a look at the 12 Best Hemp Stocks To Buy Now and 11 Best Cruise Stocks To Buy Right Now
