S&P 500   4,273.53
DOW   33,618.88
QQQ   354.21
5 Oversold Semiconductor Stocks to Nibble On Ahead of Q3 Earnings
The "Plug and Play" Model Putting Online Giants to Shame (Ad)
3 Stocks That Really, Really Need the Defense Bill to Pass
JPMorgan to pay $75 million on claims that it enabled Jeffrey Epstein's sex trafficking operations
The "Plug and Play" Model Putting Online Giants to Shame (Ad)
Stock market today: Futures climb as a miserable month for US markets nears its end. Crude nears $92
AI Race Accelerates with Amazon's Investment In Anthropic
The "Plug and Play" Model Putting Online Giants to Shame (Ad)
This Little Known Automaker May Save Your Life and Your Portfolio
US consumer confidence tumbles in September as American anxiety about the future grows
S&P 500   4,273.53
DOW   33,618.88
QQQ   354.21
5 Oversold Semiconductor Stocks to Nibble On Ahead of Q3 Earnings
The "Plug and Play" Model Putting Online Giants to Shame (Ad)
3 Stocks That Really, Really Need the Defense Bill to Pass
JPMorgan to pay $75 million on claims that it enabled Jeffrey Epstein's sex trafficking operations
The "Plug and Play" Model Putting Online Giants to Shame (Ad)
Stock market today: Futures climb as a miserable month for US markets nears its end. Crude nears $92
AI Race Accelerates with Amazon's Investment In Anthropic
The "Plug and Play" Model Putting Online Giants to Shame (Ad)
This Little Known Automaker May Save Your Life and Your Portfolio
US consumer confidence tumbles in September as American anxiety about the future grows
S&P 500   4,273.53
DOW   33,618.88
QQQ   354.21
5 Oversold Semiconductor Stocks to Nibble On Ahead of Q3 Earnings
The "Plug and Play" Model Putting Online Giants to Shame (Ad)
3 Stocks That Really, Really Need the Defense Bill to Pass
JPMorgan to pay $75 million on claims that it enabled Jeffrey Epstein's sex trafficking operations
The "Plug and Play" Model Putting Online Giants to Shame (Ad)
Stock market today: Futures climb as a miserable month for US markets nears its end. Crude nears $92
AI Race Accelerates with Amazon's Investment In Anthropic
The "Plug and Play" Model Putting Online Giants to Shame (Ad)
This Little Known Automaker May Save Your Life and Your Portfolio
US consumer confidence tumbles in September as American anxiety about the future grows
S&P 500   4,273.53
DOW   33,618.88
QQQ   354.21
5 Oversold Semiconductor Stocks to Nibble On Ahead of Q3 Earnings
The "Plug and Play" Model Putting Online Giants to Shame (Ad)
3 Stocks That Really, Really Need the Defense Bill to Pass
JPMorgan to pay $75 million on claims that it enabled Jeffrey Epstein's sex trafficking operations
The "Plug and Play" Model Putting Online Giants to Shame (Ad)
Stock market today: Futures climb as a miserable month for US markets nears its end. Crude nears $92
AI Race Accelerates with Amazon's Investment In Anthropic
The "Plug and Play" Model Putting Online Giants to Shame (Ad)
This Little Known Automaker May Save Your Life and Your Portfolio
US consumer confidence tumbles in September as American anxiety about the future grows

Lightning Strikes For Thor Industries, Again 

Thor Industries stock price forecast

Key Points

  • Thor Industries had a better-than-expected quarter and raised guidance. 
  • Short covering has the stock up 15% and it may continue higher. 
  • The 2.25% dividend is safer than ever and the outlook for growth has grown more robust. 
  • 5 stocks we like better than THOR Industries

Lightning struck for Thor Industries NYSE: THO when lockdowns and social distancing became the norm, and it has struck again for this RV industry leader. The Q3 results are not excellent because sales are down high-double-digits compared to last year, but, regarding normalization within the industry, they are robust indeed.

The takeaway is that Thor’s results are better-than-expected and point to normalization at levels far above the pre-pandemic business. Within that is a marked increase in profitability that suggest the capital returns will continue and continue to increase and build value for shareholders.  

Thor Industry Outpaces Consensus, Guides Higher 

Thor Industry had a tough quarter, but it was expected. The RVIA has forecast a high-30% shipment decline for months, and the top-line results are consistent. The company reported $2.93 billion in net revenue, down 37.1% compared to last year, but it is better than the consensus figure, 390 basis points better. The strength was driven entirely by European sales, which grew by 19.7%. Sales in the US were mixed, with Towables down 57% and Motorized down 24.4%.

The good news within the report begins with the top line. The revenue is down but less than expected and well above 2019 levels. This is compounded by a decline in the margin, which was less than expected and left the cash flow in good shape. The company’s gross margin contracted by 250 basis points and net income margin by more than 300 basis points, but both were less than expected.

The margin strength is also centered in the EU and is expected to continue. The margin is up compared to 2 years and four years ago, leaving GAAP EPS at $2.24 and double the consensus figure.

The guidance is mixed with revenue targets trimmed and EPS raised. The company lowered the top end of the revenue range by $0.5 billion or about 4.3%, offset by margin improvement. The company raised the low end of the margin range and the range for EPS to above the consensus. The new target assumes at least $5.80 in GAAP EPS compared to the $5.40 consensus, which is excellent news for income investors. 


Thor Industries: A Heavenly Dividend

Thor Industries isn’t a high-yielding stock per se, but it is a good yield at 2.25%, with shares trading near $90—a safety factor, including a strong balance sheet and healthy cash flows, compounds the yield. The Q3 cash flow allowed the company to pay dividends, buy back $16.6 million shares, and pay down more than $250 million in debt.

This improves an already positive outlook for distribution growth and could result in an above-average increase. Thor has increased the distribution for 14 consecutive years and is running a 5% CAGR. 

The price action is favorable. The market hit bottom in 2022 and has been consolidating since. The bias in the price action is upward, and now the post-release action has the stock up 15%. The move is partly due to short converging, so volatility should also be expected. However, a new uptrend could form if the market can sustain its bias and remain above the 150-day moving average. The analysts may help with the move but don’t expect much from them until later in the year when there is more evidence of normalization and clarity in the economic outlook. 

Thor Industries Stock Price Chart

Should you invest $1,000 in THOR Industries right now?

Before you consider THOR Industries, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and THOR Industries wasn't on the list.

While THOR Industries currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

The Best High-Yield Dividend Stocks for 2023 Cover

Looking to generate income with your stock portfolio? Use these ten stocks to generate a safe and reliable source of investment income.

Get This Free Report

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
THOR Industries (THO)
2.1211 of 5 stars
$92.86-2.1%1.94%13.36Hold$92.00
Compare These Stocks  Add These Stocks to My Watchlist 

Thomas Hughes

About Thomas Hughes

Contributing Author: Technical and Fundamental Analysis

Thomas got his start with the markets while working as a Chef. In 2005 a chance invitation to attend the seminar “How To Buy And Sell Your Own Stocks” altered his worldview. Soon trading and stocks consumed his every waking moment to the point of excluding all else. Thomas now enjoys a much different lifestyle engaged in his true passion, uncovering great investments.
Contact Thomas Hughes via email at tmhughes.writeon@gmail.com.

Featured Articles and Offers

Stock Market Update 9/25/23 | Beware the PCE Price Index Report this Week

Stock Market Update 9/25/23 | Beware the PCE Price Index Report this Week

In this week's preview, Thomas Hughes explores the current market dynamics, including the VIX's low fear levels and the implications of the FOMC meeting.

Search Headlines:

My Account -