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

Zacks Equity Research

In the latest trading session, Thor Industries (THO) closed at $64.83, marking a -1.46% move from the previous day. This move lagged the S&P 500's daily gain of 0.22%. Meanwhile, the Dow gained 0.2%, and the Nasdaq, a tech-heavy index, added 0.18%.

Heading into today, shares of the recreational vehicle maker had lost 2.68% over the past month, lagging the Construction sector's gain of 0.85% and the S&P 500's gain of 3.89% in that time.

Investors will be hoping for strength from THO as it approaches its next earnings release, which is expected to be December 9, 2019. In that report, analysts expect THO to post earnings of $1.22 per share. This would mark 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.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.63 per share and revenue of $9.20 billion, which would represent changes of +8.69% and +17%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for THO. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 remained stagnant. THO currently has a Zacks Rank of #3 (Hold).

Investors should also note THO's current valuation metrics, including its Forward P/E ratio of 11.68. This represents a discount compared to its industry's average Forward P/E of 13.15.

Also, we should mention that THO has a PEG ratio of 1. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. THO's industry had an average PEG ratio of 0.8 as of yesterday's close.

The Building Products - Mobile Homes and RV Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 206, which puts it in the bottom 20% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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