Americans in some states are starting to see their economies open and it probably won’t be too much longer before a national reopening is seen, suggests Mark Skousen, editor of Fast Money Alert.
It is with this reopening of the economy in mind that we come to our recommendation of Thor Industries, Inc. (THO), which manufactures and sells towable and motorized recreational vehicles (RVs).
The company's RVs are sold under various brand names, including Heartland RV, Jayco, Livin Lite RV and the most excellent and distinctive brand in the market today -- Airstream.
Well, after a sharp decline in RV sales at the outset of the COVID-19 shutdowns, customers have started buying RVs again. And if you think about it, that purchase makes a lot of sense.
First, you can vacation in your own facility, one that you know is clean and COVID safe. Second, you can go explore the great outdoors with activities such as camping, hiking, fishing, etc., and you don’t have to be cooped up in a crowded hotel or a cruise ship or theme park.
And third, have you checked the price of gasoline out lately? Rock-bottom fuel prices mean hitting the road on a great American adventure tour this summer will also be very cost effective.
The logic behind adding THO here is first and foremost a confluence of all of the above positive-news tailwinds just mentioned, but then there are the fundamental positives.
Of course, the real driver here in this service is the fast money, and in this front, we’ve seen a huge rush into THO. Consider that since falling to a 52-week low on March 18, THO shares have come roaring back some 120%!
Moreover, the stock recently moved back above key technical resistance at the 50-day and 200-day moving averages. Yet the fast money isn’t through with THO yet, and as the nation continues to open up, we are likely to see THO shares keep going up and up.
