We recently compiled a list of the 12 Best RV and Camping Stocks To Buy Now. In this article, we are going to take a look at where Patrick Industries, Inc. (NASDAQ:PATK) stands against the other RV and camping stocks.
RV Industry Outlook: Steady Growth Amid Economic Challenges?
The RV and camping industry plays a vital role in promoting outdoor recreation. It provides families and individuals with affordable travel options. Currently, the RV and camping industry is experiencing notable transformation.
A key trend driving transformation and growth in the RV and camping industry is the rise in digital nomadism, a lifestyle where individuals work remotely while traveling and use technology to perform their jobs from various locations.
According to the MBO Partners 2023 State of Independence research study, 17.3 million American workers, or 11% of the workforce, identify as digital nomads. This number has seen a significant increase since the pandemic, reflecting the growing trend of remote work that allows individuals to travel while maintaining their jobs.
As a result of this growing trend of digital nomadism, the demand for RVs and camping facilities has increased, benefiting the entire industry.
According to the RV Industry Association (RVIA), RV wholesale shipments are expected to slightly increase in 2024, reaching 324,100 units, with continued growth projected for 2025. The Fall 2024 edition of RV RoadSigns, prepared by ITR Economics, indicates that shipments could rise to the mid-300,000 unit range next year
Craig Kirby, President and CEO of RVIA, noted that while high interest rates have posed challenges for the RV market, there is optimism for steady shipments in the coming months. He highlighted that consumer interest in RV travel and camping remains strong, suggesting that as interest rates decline, the industry is well-positioned for recovery.
The new forecast estimates that 2024 RV shipments can range from 311,600 to 336,600 units, with a median of 324,100 units. For 2025, the range is expected to increase to 329,900 to 362,300 units, with a median of 346,100 units. This positive outlook reflects a resilient market despite current economic pressures.
Following Donald Trump’s re-election as President, the RV industry has expressed optimism about working with the new administration on key industry priorities. Craig Kirby, President and CEO of the RV Industry Association, congratulated Trump and emphasized their readiness to collaborate with the incoming administration and Congress. The association aims to address the needs of the RV industry, its members, and RV enthusiasts across the country. Kirby highlighted the productive relationship established during Trump’s first term, which led to significant achievements like the Great American Outdoors Act.
Phil Ingrassia, President of the RV Dealers Association (RVDA), also welcomed Trump’s return to the White House, seeing it as an opportunity to promote growth in the RV industry and encourage more Americans to explore RV travel. The RVDA plans to advocate for the passage of the Travel Trailer & Camper Tax Parity Act, which would address tax disadvantages faced by some RV dealers. Additionally, the association intends to work with its partners to advance policies that improve access to national public lands, further supporting the outdoor recreation industry.
Our Methodology
To compile our list of the 12 best RV and camping stocks to buy now, we used the Finviz and Yahoo stock screeners to find the largest RV and camping companies. We also reviewed our own rankings and consulted various online resources. From an initial pool of more than 25 RV and camping stocks, we focused on the top 12 stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s database of 912 elite hedge funds. The 12 best RV and camping stocks to buy now are ranked in ascending order based on the number of hedge funds holding stakes in them as of Q2 2024.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A craftsman building cabinets in a factory wearing safety glasses and protective gloves.
Patrick Industries, Inc. (NASDAQ:PATK)
Number of Hedge Fund Holders: 21
Patrick Industries, Inc. (NASDAQ:PATK) is a leading manufacturer and distributor of component products and building materials for recreational vehicles (RVs), manufactured housing, marine applications, and other industrial markets. The company offers more than 85 brands, and its products are found in millions of recreational and marine vehicles, homes, schools, and offices.
In the third quarter of 2024, the company reported net sales of $919 million, reflecting a 6% increase compared to the same period last year. This growth was primarily driven by a 13% rise in housing revenue, which helped offset a 21% decline in marine revenue. Despite challenges in the recreational vehicle market, Patrick Industries, Inc. (NASDAQ:PATK) has maintained strong operational performance.
Patrick Industries, Inc. (NASDAQ:PATK) is focused on three key strategies: diversification, advanced product innovation, and acquisitions. By leveraging its diverse portfolio, the company is focused on adapting to changing consumer preferences while maintaining a competitive edge. Patrick Industries, Inc. (NASDAQ:PATK) is strategically making investments in automation to enhance scalability and quality.
The company’s commitment to innovation is evident through its Advanced Product Group and Patrick’s individual brands, which continue to develop next-generation solutions. In the Q3 2024 earnings call, Patrick Industries, Inc.’s (NASDAQ:PATK) management shared that the company’s new proprietary composite board, known as MTXT, is achieving significant adoption among RV customers who are seeking innovative, lightweight, and sustainable solutions.
On September 9, Patrick Industries, Inc. (NASDAQ:PATK) completed the acquisition of RecPro, a leading e-commerce business and aftermarket platform specializing in creating and marketing component products, systems, and solutions for the RV and marine end markets. According to Patrick Industries, Inc. (NASDAQ:PATK), RecPro is expected to generate approximately $80 million in revenue in 2024.
Overall, the company’s strategic focus on innovation, diversification, and acquisitions positions it well for future growth in the RV sector.
Over the past 10 years, Patrick Industries, Inc. (NASDAQ:PATK) has grown its revenue and net income at a compound annual growth rate (CAGR) of 18%.
According to Insider Monkey’s database of over 900 hedge funds, 21 hedge funds held stakes in Patrick Industries, Inc. (NASDAQ:PATK) in Q2 2024, an increase from 18 hedge funds in Q1 2024.
Overall, PATK ranks 8th on our list of the best RV and camping stocks to buy now. While we acknowledge the potential of PATK as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PATK but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
