Camping World Holdings (NYSE:CWH)
Camping World Holdings Inc provides services, protection plans, products, and resources for recreational vehicle (RV) enthusiasts across the United States. The company operates its business through two reportable segments: Good Sam Services and Plans and RV and Outdoor Retail. It generates maximum revenue from the RV and Outdoor Retail segment. RV and Outdoor Retail segment consists of all aspects of RV dealership operations, which includes selling new and used RVs, assisting with the financing of new and used RVs, selling protection and insurance related services and plans for RVs, servicing and repairing new and used RVs, installation of RV parts and accessories and others.
REV Group (NYSE:REVG)
REV Group Inc is a United States-based designer, manufacturer, and distributor of specialty vehicles and related aftermarket parts and services. It provides customized vehicle solutions for applications including essential needs, industrial and commercial, and consumer leisure. The operating segments of the company are Fire & Emergency, Commercial, and Recreation. The products of the company are sold to municipalities, government agencies, private contractors, consumers, and industrial and commercial end-users. It derives a majority of the revenue from the Fire and Emergency segment which includes manufacturing of fire apparatus and ambulance products. The company operates in the US & Canada, Europe/Africa, and the rest of the world.
Winnebago Industries (NYSE:WGO)
Winnebago Industries manufactures Class A, B, and C motor homes along with towables, customized specialty vehicles, boats, and parts. Headquartered in Eden Prairie, Minnesota, Winnebago has been producing recreational vehicles since 1958. Revenue was about $3.6 billion in fiscal 2021. Winnebago expanded into towables in 2011 with the acquisition of Sunnybrook and acquired Grand Design in November 2016. Towables made up 85% of the firm’s RV unit volume, up from 31% in fiscal 2016. The company’s total RV unit volume was 71,015 in fiscal 2021. Winnebago expanded into boating in 2018 with the purchase of Chris-Craft, bought premium motor home maker Newmar in November 2019, and bought Barletta pontoon boats in August 2021.
Polaris designs and manufactures off-road vehicles, including all-terrain vehicles and side-by-side vehicles for recreational and utility purposes, snowmobiles, small vehicles, and on-road vehicles, including motorcycles and low-emission vehicles, along with the related replacement parts, garments, and accessories. The firm entered the aftermarket parts segment in 2016, tying up with Transamerican Auto Parts and then tapped into boats through the acquisition on Boat Holdings in 2018, offering exposure to new segments of the outdoor lifestyle market. Polaris products retailed through 2,300 dealers in North America and through 1,400 international dealers as well as more than 30 subsidiaries and 90 distributors in more than 120 countries outside North America at the end of 2020.
Johnson Outdoors (NASDAQ:JOUT)
Johnson Outdoors Inc. is an outdoor adventure company. It manufactures and markets camping equipment, fishing equipment, diving gear and water sports equipment. It owns and operates several brands such as Minn Kota, Humminbird, ScubaPro, Eureka! And Old Town.
Johnson Outdoors has a market cap of $899 million and has an EPS of $4.32. It has an annual dividend yield of $0.84 per share. Johnson Outdoors trades more than 33,000 shares per month. It generated revenue of $562 million in 2019.
Recreational vehicles (RVs) are popular with both millennials and affluent retirees. In the past decade, the RV industry has seen massive growth, even in the face of the COVID-19 pandemic. Though RV sales tend to follow the general movement of the economy, adding a few RV stocks can be an affordable way to invest in the automotive industry and complement auto stocks and funds. Here's what you need to know about recreational vehicle stocks.
Quick Look at the Best Recreational Vehicle Stocks:
Recreational vehicles are vehicles used for camping, cross-country trips and other recreational purposes. An RV might be self-propelled, or it might require an attachment to a car or truck. Self-propelled RVs can sell for $40,000 to almost $1 million depending on the manufacturer and the features the RV offers.
The RV industry tends to follow the overall trend of the economy as a whole because they’re a recreational purpose. If the market and economy of the United States is up, RV sales tend to rise as consumers have more discretionary income. When the economy dips, RV sales dip as well. Despite this trend, the recreational vehicle industry has rebounded well since the Great Recession.
Companies that manufacture RVs often produce other motor vehicles as well. For example, Harley-Davidson (NYSE: HOG) manufactures motorcycles and accessories, while Winnebago (NYSE: WGO) recently expanded its production into motorboats as well as RVs.
Best Online Brokers for Recreational Vehicle Stock
Whether you’re interested in purchasing RV stocks or you’re searching for more stocks under $5, you’ll need to open an account with a broker before you can begin investing. Your broker will execute buy and sell orders on your behalf. Most brokers now allow you to create an account online and begin trading from a convenient desktop platform.
Don’t have time to research broker options before you begin investing? Consider opening an account with one of our favorite online brokers below.
Features to Look for in Recreational Vehicle Stock
When you’re comparing recreational vehicle stocks, look for these 3 key factors.
- A positive earning per share value: A company’s earnings per share (EPS) is calculated by dividing the total net profits by the number of outstanding shares. When you invest, look for companies with a positive EPS value — this indicates that the company is currently profitable.
- A dividend yield below 10%: If you’re considering investing in the RV industry to earn dividends and create a passive income stream, be mindful of each stock’s dividend yield. A dividend yield compares the current price of a stock with the company’s current annual dividend.
As a general rule, you should search for stocks with dividend yields below 10% — a yield higher than 10% may indicate that the dividend is unsustainable and that a cut is coming soon.
- A wide variety of products and models: Most RV manufacturers are also involved in the production of other motor vehicles. Choosing an RV corporation that offers additional vehicles, parts or accessories can allow you to invest in multiple industries for the price of a single stock.
Revving Up Your Portfolio With Recreational Vehicle Stocks
Adding a few recreational vehicle stocks to your portfolio can be an excellent way to add diversity to your portfolio. However, it’s important to remember that one particular industry or product should never make up the majority of your portfolio. Use RV stocks to complement a larger portfolio made up of total market index funds, mutual funds and large-cap stocks to protect your investments while also leaving yourself room for profit.
Can I use recreational vehicle stocks to diversity my portfolio?
Yes, you can diversify your portfolio by adding recreational vehicle stocks.
What are recreational vehicle stocks?
Recreational vehicle stocks are shares of companies that manufacture RVs.
Where can I find brokers that handle recreational vehicle stocks?
You can fiind a list of recreational vehicle stock brokers on the list above.
Continue reading: BEST TRAVEL STOCKS