Thor Industries, Inc. (THO)

(A Top Pick Jan 13/22, Down 11.9%)Stockchase Research Editor: Michael O’Reilly Our PAST TOP PICK with THO has triggered its stop at $90. To remain disciplined, we recommend covering the position at this time. This will result in a net investment loss of 15%, when combined with our previous buy recommendation.

Stockchase Research Editor: Michael O'Reilly As the world's largest manufacturer of recreational vehicles, we again reiterate THO as a TOP PICK. Analyst earnings estimates continue increasing as the company demonstrates good returns backed by a ROE over 27%. It is trading at good value at 7x earnings compared to peers at 15x. It pays a reasonable dividend (backed by a payout ratio under 40% of cashflow). The dividend has grown for 14 consecutive years. We continue to recommend a stop at $90, looking to achieve $138 -- upside potential over 35%. Yield 1.68% (Analysts’ price target is $138.00)

Stockchase Research Editor: Michael O'Reilly We reiterate THO, the world's largest manufacturer of recreational vehicles, as a TOP PICK. It is trading at good value at 10x earnings compared to peers at 20x. It pays a decent dividend (backed by a payout ratio under 40% of cashflow), which was just increased by 5% recently. We continue to recommend a stop at $90, looking to achieve $145 -- upside potential over 42%. Yield 1.65% (Analysts’ price target is $148.56)

Stockchase Research Editor: Michael O'Reilly Demand for RVs skyrocketed during the pandemic. Inventories continue to decline despite increased production to the point where order backlogs exceed $14 billion. It trades at 16x earnings, compared to peers at 23x. It pays a smallish dividend, but it is backed by a 35% payout ratio of cash flow. We would buy this with a stop loss at $90, looking to achieve $145 -- upside potential over 22%. Yield 1.42% (Analysts’ price target is $142.33)

(A Top Pick Aug 20/20, Down 12.1%)Stockchase Research Editor: Michael O'Reilly Based on a the breakdown below our stop-loss of $95 we are recommending this position be covered. This is not so much a change in company fundamentals, as it is in the possibility of further general market weakness. We see better opportunities in the market.

Stockchase Research Editor: Michael O'Reilly THO manufacturers RVs in the US, Canada and Europe. One of the trends emerging with the pandemic is for families to travel together and RV sales have benefitted. The company recently released earnings and and EPS was $0.43 versus consensus for a loss of $0.10. Moody's just completed a periodic review of ratings and considers the company to have a competitive standing in North America and Europe. It also pays a reasonable dividend with a payout ratio of less than 45% of cash flow. We would trade this with a stop loss at $95 and an upper target of $120. Yield 1.47%