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 YETI Holdings, Inc. (NYSE:YETI) 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 person fishing in the lake, using the companies fishing equipment to reel in their catch.
YETI Holdings, Inc. (NYSE:YETI)
Number of Hedge Fund Holders: 31
YETI Holdings, Inc. (NYSE:YETI) designs, retails and distributes innovative products for the outdoor and recreation market. The company caters to various outdoor activities such as camping, hunting, fishing, barbecue, and other activities, making its products ideal for outdoor enthusiasts.
In Q2 2024, the company highlighted the success of its innovative cooler designs, which are expected to drive growth in the second half of 2024. YETI Holdings, Inc. (NYSE:YETI) is also expanding its drinkware line, enhancing customer engagement through strong social media presence and global sales performance. This focus on innovation and customer satisfaction positions YETI well in the competitive outdoor and camping market.
YETI Holdings, Inc. (NYSE:YETI) is investing to strengthen its presence in Asia and Europe and expand its logistics capabilities. These efforts support the company’s goal of efficiently scaling operations while diversifying its global supply chain. During the third quarter of 2024, the company commenced production at its second drinkware facility outside of China.
In Q3 2024, the company introduced several exciting new products, with a focus on its drinkware segment while also expanding into bar and tableware and entering the premium cookware market. The company’s global business also performed extremely well, with the brand’s international sales increasing for the fourth straight quarter by over 30%.
YETI Holdings, Inc. (NYSE:YETI) reported a 10% increase in net sales in Q3 2024, with coolers and equipment sales rising by 12%. Drinkware sales grew by 9% year-over-year. The company’s US sales increased by 7% while international sales surged by 30%, reflecting strong demand across all channels. The company also achieved a 32% increase in net income to $56.3 million, demonstrating effective management and operational efficiency.
YETI ranks among the best RV and camping stocks to buy. Over the past 5 years, YETI Holdings, Inc. (NYSE:YETI) has managed to grow its revenue at a compound annual growth rate (CAGR) of 16%, while its net income has increased at a CAGR of 23%.
According to Insider Monkey’s database, 31 hedge funds held stakes in YETI Holdings, Inc. (NYSE:YETI) in the second quarter of 2024. Additionally, the median 1-year stock price target for YETI set by analysts indicates a potential upside of 17% from its current price.
Overall, YETI ranks 4th on our list of the best RV and camping stocks to buy now. While we acknowledge the potential of YETI 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 YETI 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.