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

Zacks Equity Research

Thor Industries (THO) closed at $65.18 in the latest trading session, marking a +0.06% move from the prior day. This change lagged the S&P 500's 0.37% gain on the day. At the same time, the Dow added 0.42%, and the tech-heavy Nasdaq gained 0.56%.

Heading into today, shares of the recreational vehicle maker had gained 15.48% over the past month, outpacing the Construction sector's gain of 5.63% and the S&P 500's gain of 4.42% in that time.

THO will be looking to display strength as it nears its next earnings release. On that day, THO is projected to report earnings of $1.22 per share, which would represent a year-over-year decline of 4.69%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.30 billion, up 30.88% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.63 per share and revenue of $9.20 billion. These totals would mark changes of +8.69% and +17%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for THO. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.18% higher. THO is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, THO is holding a Forward P/E ratio of 11.56. This valuation marks a discount compared to its industry's average Forward P/E of 12.37.

We can also see that THO currently has a PEG ratio of 0.97. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Building Products - Mobile Homes and RV Builders stocks are, on average, holding a PEG ratio of 0.77 based on yesterday's closing prices.

The Building Products - Mobile Homes and RV Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 100, putting it in the top 40% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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