Thor Industries (THO) Gains But Lags Market: What You Should Know

·3 min read

In the latest trading session, Thor Industries (THO) closed at $91.74, marking a +0.97% move from the previous day. This move lagged the S&P 500's daily gain of 2.44%. Meanwhile, the Dow gained 1.65%, and the Nasdaq, a tech-heavy index, added 0.28%.

Coming into today, shares of the recreational vehicle maker had lost 12.87% in the past month. In that same time, the Construction sector lost 15.02%, while the S&P 500 lost 9.65%.

Investors will be hoping for strength from Thor Industries as it approaches its next earnings release. The company is expected to report EPS of $3.39, up 42.44% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.57 billion, up 30.69% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $15.37 per share and revenue of $15.15 billion. These totals would mark changes of +29.7% and +22.98%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Thor Industries. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Thor Industries is currently a Zacks Rank #3 (Hold).

Investors should also note Thor Industries's current valuation metrics, including its Forward P/E ratio of 5.91. This valuation marks a discount compared to its industry's average Forward P/E of 6.17.

The Building Products - Mobile Homes and RV Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 36, which puts it in the top 15% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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