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Thor Industries (THO) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

Thor Industries (THO) closed at $67.64 in the latest trading session, marking a +0.8% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.56%. Meanwhile, the Dow gained 0.49%, and the Nasdaq, a tech-heavy index, added 1.01%.

Coming into today, shares of the recreational vehicle maker had gained 33.83% in the past month. In that same time, the Construction sector gained 5.06%, while the S&P 500 gained 1.38%.

Wall Street will be looking for positivity from THO as it approaches its next earnings report date. 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%. Our most recent consensus estimate is calling for quarterly revenue 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 $5.62 per share and revenue of $9.20 billion. These totals would mark changes of +8.49% and +17%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for THO. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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 has moved 2.9% lower within the past month. THO is currently a Zacks Rank #3 (Hold).

Digging into valuation, THO currently has a Forward P/E ratio of 11.93. This valuation marks a discount compared to its industry's average Forward P/E of 12.79.

Also, we should mention that THO has a PEG ratio of 1.02. 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. The Building Products - Mobile Homes and RV Builders was holding an average PEG ratio of 0.8 at yesterday's closing price.

The Building Products - Mobile Homes and RV Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 103, putting it in the top 41% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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