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 Polaris Inc. (NYSE:PII) 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 customer enjoying a leisurely ride on a recreational vehicle, powered by lithium batteries.
Polaris Inc. (NYSE:PII)
Number of Hedge Fund Holders: 20
Polaris Inc. (NYSE:PII) is an American automotive manufacturer and recreation vehicle company. It designs and manufactures power sports vehicles, including off-road vehicles, all-terrain vehicles, snowmobiles, and side-by-side vehicles.
In the third quarter of 2024, Polaris Inc. (NYSE:PII) reported sales of $1.72 billion, reflecting a significant decline of 23% compared to the previous year. This drop in sales is largely attributed to ongoing challenges in consumer confidence and retail demand.
To address these market conditions, the company is focusing on managing dealer inventory and improving operational efficiency. Polaris Inc. (NYSE:PII) aims to reduce dealer inventory by 15% to 20% by year-end, which is essential for maintaining a healthy dealer network and long-term success. Despite the current retail challenges, Polaris Inc. (NYSE:PII) remains committed to innovation and cost management, which are vital for achieving its growth targets and enhancing shareholder value.
Polaris Inc. (NYSE:PII) announced plans to lower production and shipments to protect its dealer network in July, which contributed to the sales decline in Q3. While these decisions negatively impacted short-term results, they were necessary to support strong dealer partnerships. The company also reported a 7% decrease in retail sales, driven by persistent inflation and high interest rates affecting consumer spending.
Despite market challenges, Polaris Inc. (NYSE:PII), as an industry leader in innovation, continues to invest strategically in research and development. The company has made new product introductions over the past 18 months, and it plans to enter 2025 with the most compelling lineup of products.
Overall, Polaris Inc.’s (NYSE:PII) focus on operational efficiency and commitment to innovation make it one of the best RV stocks.
According to Insider Monkey’s database of over 900 hedge funds, 20 hedge funds held stakes in Polaris Inc. (NYSE:PII) in Q2 2024. Additionally, the 12-month median price target for Polaris Inc.’s (NYSE:PII) stock set by analysts indicates a potential increase of almost 9% from the stock’s current price.
Overall, PII ranks 9th on our list of the best RV and camping stocks to buy now. While we acknowledge the potential of PII 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 PII but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock
Disclosure: None. This article is originally published at Insider Monkey.
