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 Winnebago Industries, Inc. (NYSE:WGO) 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 family on a beautiful day sailing on a recreational boat in a peaceful lake.
Winnebago Industries, Inc. (NYSE:WGO)
Number of Hedge Fund Holders: 19
Winnebago Industries, Inc. (NYSE:WGO) is an American manufacturer of outdoor recreation products, including RVs and boats. The company designs and develops motorhomes, travel trailers, fifth-wheel products, outboard and sterndrive powerboats, pontoons, and commercial community outreach vehicles.
In the fourth quarter of fiscal 2024, Winnebago Industries, Inc. (NYSE:WGO) reported revenues of $720.9 million, down 6.5% from the same quarter in the previous year. Operating expenses rose significantly to $112.0 million, a 60.4% increase year-over-year, largely due to a $30.3 million impairment charge related to the Chris-Craft division, costs associated with launching the Grand Design motorized business, and strategic investments in engineering, digital technology development, and enhanced data and information technology capabilities.
Despite facing a challenging retail environment in the RV and marine industries, Winnebago Industries, Inc. (NYSE:WGO) is committed to returning to growth. The company has made key leadership changes in its Winnebago Motorhome and Towables businesses to address operational and financial challenges.
The company recently launched its new Lineage Series M from Grand Design in the Motorhome RV segment. The new vehicle was showcased at the Hershey RV show and RV Dealer Open House in September. The positive response from consumers and dealers indicates strong market interest. A small number of units also began shipping in the fourth quarter of the fiscal 2024.
By investing in strategic initiatives and enhancing product offerings, Winnebago Industries, Inc. (NYSE:WGO) aims to strengthen its market position.
According to Insider Monkey’s database, 19 hedge funds held stakes in Winnebago Industries, Inc. (NYSE:WGO) in the second quarter of 2024. WGO ranks among the top 10 on our list of the best RV and camping stocks to buy now.
Overall, WGO ranks 10th on our list of the best RV and camping stocks to buy now. While we acknowledge the potential of WGO 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 WGO 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.
