Categories Other Industries, Trending Stocks
Thor Industries (THO) can be a good investment option for risk-takers
Thor Industries, Inc. (NYSE: THO), a market leader in recreational vehicles, is part of an industry that has come in the firing line of coronavirus, and the epidemic-related disruption is taking a heavy toll on all travel-related businesses. Currently, uncertainty looms over the future of Thor and its peers, due to the the market turmoil.
Near-term Woes
Since the company sources raw materials from the regions affected by the pandemic, supply chain disruptions will affect the business, though it remained resilient to the crisis in the initial weeks. With the peak season approaching, the current volatility could be a concern for the stakeholders. The main risk is that the company is dependent on a single dealer for about one-fifth of its business.
[irp posts=”52739″]
Though things don’t look very promising, at least for the time being, the strong order book and positive demand trend indicate the company would survive the crisis and get back on track. So, those looking for long-term investments can consider adding Thor to their portfolio.
Future Perfect
Thor has enjoyed stable demand for its products and is focused on expanding the business. Hymer USA, a unique facility being planned at Bristol, is expected to help the company broaden its market share in North America, though the recent setback has put the venture in limbo. Erwin Hymer Group, the European firm that joined the Thor fold one year ago, has been a key contributor to revenues since then.
Almost all the analysts following Thor believe the stock is a good buy, with the price estimated to double in the long term. The company’s earnings performance has been average in the past, in terms of beating the estimates.
Looking Back
Thor ended the first half of 2020 on a positive note, posting earnings of $0.52 per share compared to a loss last year. The improvement reflects a marked increase in revenues to $2 billion. While the top-line exceeded the market’s expectations, earnings missed.
After shifting to recovery mode in mid-2019, Thor’s shares maintained the uptrend during the remainder of the year and beyond. But the stock started declining a few weeks ago and has lost 56% since then.
Most Popular
Earnings Preview: Microsoft expected to report higher Q3 revenue, profit
Tech behemoth Microsoft Corp. (NASDAQ: MSFT) is preparing to report its third-quarter 2025 results, amid expectations for a year-over-year increase in revenue and earnings. The company has performed well recently,
What to expect when eBay (EBAY) reports its Q1 2025 earnings results
Shares of eBay Inc. (NASDAQ: EBAY) were down slightly in midday trade on Friday. The stock has gained 8% year-to-date. The ecommerce giant is slated to report its earnings results
AbbVie Q1 2025 adjusted earnings increase on 8% revenue growth; beat estimates
Biopharmaceutical company AbbVie, Inc. (NYSE: ABBV) announced first-quarter 2025 financial results, reporting an increase in revenue and adjusted earnings. The company reported worldwide net revenues of $13.3 billion for the
Comments