Please ensure Javascript is enabled for purposes of website accessibility

Why Thor Industries Stock Jumped 25% in January

By Demitri Kalogeropoulos – Updated Apr 22, 2019 at 4:56PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The RV specialist benefited from a sharp market turnaround last month.

What happened

Shares of Thor Industries (THO 4.17%) outpaced the market by a wide margin last month, gaining 25% compared with an 8% spike in the S&P 500, according to data provided by S&P Global Market Intelligence.

The rally just removed a small part of shareholders' recent losses, though, and the stock is still down by over 50% in the past full year versus a 2% downtick in the S&P 500.

An RV is towed up a hill.

Image source: Getty Images.

So what

Broader stock market gains were a key driver behind the recreational vehicle giant's January rally, as indexes posted their best start to a year in over three decades. And Thor Industries' stock slumped in the prior month, which gave it more room to rebound if investors' moods shifted, as they did in January.

But shareholders can also thank rival Winnebago (WGO 2.29%) for contributing to the brightening industry prospects last month. That manufacturer announced in late December that sales rose by 10% as profitability improved. The report was much better than investors had feared and helped send both stocks higher in the weeks that followed.

Now what

Thor Industries isn't in as strong a market position as Winnebago right now, and its weak order backlog and falling pricing trends suggest more pain in the coming quarters. However, much of that gloom is arguably priced into the stock, which could make it an attractive option for value-focused investors who believe in the RV industry long term.

Check out the latest earnings call transcripts for companies we cover.


Demitrios Kalogeropoulos has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Thor Industries, Inc. Stock Quote
Thor Industries, Inc.
$71.75 (4.17%) $2.87
Winnebago Industries, Inc. Stock Quote
Winnebago Industries, Inc.
$53.62 (2.29%) $1.20

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/27/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.