Are you looking for RV stocks to trade? We’ve put together an RV stock list for you so you can take a look at the potential growth from these companies. RVing as been a popular form of travel. They’ve even filmed reality TV following a family around in an RV for a cross country trip.
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|CWH||Camping World Holdings|
What are RVs or Recreational Vehicles?
Have you ever seen those massive campers that people take road trips in across the country? Remember what Robert De Niro drove in Meet the Parents?
Or maybe you know it better from what Walter White used in Breaking Bad as a mobile meth lab? Either way, when they’re not being used for illicit purposes, RVs are one of the most popular ways that Americans use to travel.
And due to the COVID-19 pandemic, the demand for them is about to go through the roof this summer. What defines an RV? Typically an RV must be equipped with living quarters which can include beds, full bathrooms, and kitchens.
The term RV actually encapsulates all different types of recreational vehicles including motorhomes, camper vans, caravans or trailers, popup campers, and truck campers. Why are they so popular? Think of it as a complete vacation for a family with the transportation and accommodation all in one package.
There are even luxury RVs these days that carry a price tag of over $2 million! While that does not sound like the best use of money to us, there are ways to invest in RVs that can be done without breaking the bank. So which RV stocks can you trade? Let’s take a look at our RV stock list to find out!
Can I Invest in RV Stocks?
You sure can! If you think of RV companies as specialty automakers it becomes a little easier to see why they can potentially make for good investments as publicly traded companies. And why we thought you might want an RV stock list.
In fact, as America comes out of the pandemic, it is anticipated that RVs will be one of the most highly sought after methods of travel this summer. Especially with a majority of global travel still closed. Which companies are set to prosper? Here are some of the best RV Stocks you can own today.
What RV Companies Are Publicly Traded?
Winnebago (NYSE: $WGO): One of the oldest and most recognized names in the RV industry is Winnebago. They’re a 63-year old company based out of Forest City, Iowa. Winnebago produces several different categories of RV. This includes the big Class A vehicles, the smaller Class C RVs, and even the new line of camper vans. As for the stock, Winnebago has a market cap of just $2.36 billion. And trades at roughly $70.00 per share at the time of this writing. Winnebago even offers its shareholders a dividend yield of 0.68%. This can be a bonus for those investors who are seeking some extra income from their investments.
Thor Industries (NYSE: $THO): Thor doesn’t have the brand name recognition that Winnebago has. But the Indiana based company is actually more than triple the size with a $7 billion market cap. Thor offers a wide variety of different types of RVs including Class A, Class B, Class C, Toy Hauler, Fifth Wheel, and Travel Trailers. There are numerous different subsidiary brands under the Thor umbrella. With familiar names such as Airstream, CruiserRV, Keystone RV Company, and Tiffin MotorHomes. Shares are trading a shade below the 52-week high price of $152.20 per share. Much of the anticipation of RV demand may already be baked into the stock. Like Winnebago, Thor also offers a dividend to its shareholders. But it’s at a slightly higher yield of 1.26%.
RV Stock List Continued
Camping World Holdings (NYSE: $CWH): Does this company name sound familiar? The Illinois based brand has over 170 retail locations around the country under the Camping World name. Fans of outdoor activities can head to Camping World for a one-stop shop for camping and RV supplies. In fact, on the Camping World website you can find a wide selection of new and used RVs for sale or lease. As well as the option to sell an RV you already own. Camping World even sells RV travel assistance through Good Sam. They also provide education on things like storing and maintaining your RV. Camping World Holdings has a market cap of just under $4 billion USD. They currently trade for about $42.00 per share, with a small quarterly dividend as well.
LCI Industries (NYSE: $LCII): LCI is also known as Lippert Industries. They’re a company that specializes in supplying and selling premium RV components and parts. If you can think of it, LCI offers it in RV form. So just because you are limited in space, it doesn’t mean it cannot be added to your RV. Specific RV products that LCI sells include RV windows and doors, water pumps, bed lifts, sinks and other kitchen products. And even new entrance steps. While everyone is out looking for RV stocks of the actual vehicle makers, LCI offers great exposure to the industry through vehicle customization. LCI has a market cap of about $3.6 billion USD. And trades at just under $140.00 per share.
What Is the Future of RV Stocks?
Like with all vehicles, the future of RVs is most likely going to switch over to electric engines rather than internal combustion engines. In fact, while most RVs available right now are either gas or diesel powered, there are select RVs that already run on electricity.
One such example is the aforementioned Camping World’s partnership with electric truck maker Lordstown Motors (NASDAQ: RIDE). They’re looking to create a fully electric RV that’ll hit the markets in 2022. And why they’re on our RV stock list.
There’s even an add-on for the upcoming Tesla (NASDAQ: $TSLA) Cybertruck called the Cyberlandr. This is a full-on retractable trailer that can be attached.
The Cyberlandr comes with a kitchen, bathrooms, and even an office. It can be transformed into a bedroom within a few seconds. Which has sleeping space to accommodate two adults and two children.
Like with most luxury items, the Cyberlandr is going to cost you. At an anticipated price of $49,995 USD, the Cyberlandr is going to cost you more than the Tesla Cybertruck itself! There were even rumors of an RV or motorhome version of the upcoming Tesla Semi. Although that’s never been confirmed to exist by anyone at Tesla.
There’s even a small population of Americans who have turned to tiny homes as the rising costs of home ownership in certain markets around the country become unaffordable. Premium RVs have also become popular ways to live while on the go. These days you can truly find everything you would have at home in an RV.
With remote work and migration out of large cities becoming more of the norm, we could see a steady increase in people utilizing RVs as actual permanent living spaces.
Will RV Popularity Last Beyond This Summer?
Yes! This summer could be the perfect storm with the end of the COVID-19 quarantine and global travel still being restricted by most countries. Both of these are significant tailwinds for the RV industry in America. Shipments of RVs continue to climb as summer approaches.
It has amenities available these days including WiFi, Bluetooth, and tons of electricity stored in high capacity batteries. It’s easy to sell a summer road trip to your kids as a result.
This year may be the peak for RV sales, but COVID-19 has changed the world. Many people may just opt to skip air travel for a few years and hit the open road in an RV.
There should also be a rise in popularity once electric RVs become more of the norm. One of the higher costs associated with RVs is the massive gas bill that comes with driving one over long distances.
Standard gas tanks range from 25 to well over 100 gallons. So an electric engine could save RV drivers hundreds of dollars each trip. With President Biden determined to increase America’s renewable energy infrastructure by adding electric charging stations around the country, electric RVs could dominate the American highways in the next few years.
There may be no better time to invest in RV stocks then right now. A surge in the demand for RVs and continued restrictions on global air travel should have many Americans packing up the family to travel the country in an RV this summer. Many of these RV stocks are already trading near their highs with the anticipated RV demand already priced in.
But with the RV industry moving towards electric vehicles over the next few years, we could very well see an extended run for these companies who are introducing a cheaper, more environmentally friendly way to explore the country. You may not see the same hyper growth in RV stocks that we saw with electric vehicle stocks. But with reasonable price multiples as well as paying out small quarterly dividends to shareholders, there are much worse stocks to invest in than RV companies.