Recreational Vehicle Stocks Spike Amid Safe Travel Concerns, Outdoor Season

Shares of recreation vehicle makers are seeing a move up as investors return from the Memorial Day Weekend amid a buoyancy in financial markets as more U.S. states begin relaxing their coronavirus restrictions. According to media reports, RV rentals and sales are seeing a surge as families look for ways to take a vacation while being safe amid coronavirus concerns.

THE SUMMER OF THE RV: According to the RV Industry Association, RV sales in some areas have sped up 170% over the same time period last year. "The last few days we've been getting an abundance of calls all day long where the last few weeks we haven't had any calls," says Arty Lawson, the owner of Motorhome Rentals of Louisiana in Kenner. Dealers like Lawson say they people renting from him are doing so for the first time. "They say they normally fly but they don't want to fly," said Lawson. "Or they normally take the cruise ship but say they will wait till things get better."

RVS, BOATING POPULAR: Earlier, during a CNBC interview, Michael Happe the CEO of Winnebago (WGO) said demand for RVs and boats is strong as people come out of a shelter in place restrictions and the summer vacation season begins. People want to safely be with friends and family and RVs and boating are becoming increasingly popular as summer begins, said Happe. The demand for RVs is coming from newer buyers entering the RV market for the first time and traditional buyers who are upgrading.

PRICE ACTION: Shares of most companies in the RV group are higher, with Winnebago up over 2%, and Camping World Holdings (CWH) up 14%.

OTHERS: Others in the space include LCI Industries (LCII), Polaris Industries (PII), Brunswick (BC), MasterCraft Boat (MCFT), and Thor Industries (THO).

 

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