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Profit-taking by investors resulted in almost all RV company stocks closing sharply lower today (March 20), despite the fact that leading motorhome builder Winnebago reported before the market opened that its earnings for the December-through-February period were 53% higher than they were a year earlier.
The RV stock sell-off, most likely, was triggered by the Federal Reserve’s announcement Tuesday (March 19) that, for the first time in two years, it is as worried about inflation as it is about a recession. Many investors apparently now believe the Fed will raise interest rates when it meets again on May 7, and, as a result, the RV market recovery might not be particularly robust.
Despite its strong earnings report, Winnebago’s stock price fell $6.12 a share, or 12%, today to close at $43.28.
Thor, the towable RV company whose stock price has mirrored Winnebago’s the last several weeks, saw its shares decline $3.74, or 8%, today to close at $45.50.
Monaco, a leading diesel motorhome builder, also saw its shares decline $1.98, or 7%, today to close at $25.02.
Meanwhile, Coachmen, a producer of motorhomes and towables, saw its share slip 99 cents, or 6%, today to close at $16.25.
Despite today’s losses, RV company stocks still are providing outstanding returns to investors who bought the shares a year ago.
For example, Winnebago traded for $17 to $18 and Thor shares changed hands for around $23 a year ago. Adjusted for a three-for-two stock split last September, Monaco’s shares sold for around $12 and Coachmen’s traded for $9 to $10 a share a year ago.