Shares of Thor Industries Inc. continued to show solid gains Wednesday (Sept. 10), bucking the broader recreational vehicle sector.
The Associated Press reported that Thor shares rose 43 cents, or 1.85%, to $26.43, following a $1.27 per-share bump on Monday.
High gas prices, slumping consumer confidence and a weak credit market have battered RV sales recently. On Tuesday, data from Statistical Surveys Inc. showed a 52% drop in motorized sales for July, including a 57% decline in Class A registrations.
However, R.W. Baird & Co. analyst Craig Kennison said in a note to investors that Thor managed to gain market share in both the Class A and Class C markets.
Avondale Partners LLC analyst Kathryn Thompson said in an interview investors may be holding onto Thor because it has a strong balance sheet and has proven itself the most profitable in the sector.
“Anyone who is thinking about investing in this space is looking at Thor because there’s a consensus that they are going to be the ones that will emerge from this market unscathed,” said Thompson, who holds a “Market Perform” rating on the Jackson, Ohio-based company.
Thor also was highlighted in an opinion piece on the Seeking Alpha website authored by Alan Brochstein, a CFA who has worked in the securities industry for over 22 years and founded AB Analytical Services in 2007.
Brochstein, who divulged that he recently invested in Thor, noted: “I believe that it is using its industry strength as the lowest-cost and best capitalized participant to take share and potentially eliminate some competition. Its inventory remains a bit higher than I would like to see, but I believe that is consistent with its strategy. As it comes out of the downturn and restores margins towards its norms, the stock could rapidly advance.”