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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 $64.35, marking a -0.98% move from the previous day. This change lagged the S&P 500's 0.05% gain on the day. Meanwhile, the Dow gained 0.11%, and the Nasdaq, a tech-heavy index, added 0.11%.

Coming into today, shares of the recreational vehicle maker had gained 13.2% in the past month. In that same time, the Construction sector gained 4.33%, while the S&P 500 gained 4.32%.

Wall Street will be looking for positivity from THO as it approaches its next earnings report date. This is expected to be December 9, 2019. 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.

THO's full-year Zacks Consensus Estimates are calling for earnings of $5.63 per share and revenue of $9.20 billion. These results would represent year-over-year changes of +8.69% and +17%, respectively.

Investors might also notice recent changes to analyst estimates for THO. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 0.18% higher within the past month. 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 11.53. Its industry sports an average Forward P/E of 11.95, so we one might conclude that THO is trading at a discount comparatively.

Also, we should mention that THO has a PEG ratio of 0.99. 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 0.77 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 204, which puts it in the bottom 20% 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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