Why Thor Shares Roared
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of recreational vehicle maker Thor Industries popped 10% today after its quarterly results topped Wall Street expectations.
So what: The stock has rallied nicely over the past year on rebounding consumer spending, and today's third-quarter results -- profit increased 6% on a 13% jump in revenue -- suggest that things are only getting better. While markets remain competitive, Thor is entering the peak RV selling season, when demand improves and discounting slows, giving analysts plenty of optimism over its margin growth in 2013.
Now what: Don't expect the operating momentum to slow anytime soon. "Our results for the third quarter reflect the dealer optimism and improved retail consumer demand that has been building since the beginning of the year," said Chairman and CEO Peter Orthwein. "Based on the current positive momentum we see in our markets, we are confident in our ability to generate growth in sales and earnings for the remainder of the year." With the stock now up more than 70% from its 52-week lows and trading at a near-20 P/E, however, much of that growth might already be baked into the price.
Interested in more info on Thor? Add it to your watchlist.
The article Why Thor Shares Roared originally appeared on Fool.com.Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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