Thor: The Perfect Winter Season Stock

Recreational vehicle (RV) makers owe baby boomers a very big “Thank you!”

Sales of RVs grew 87% from 2009 to 2013, reinvigorating an industry poised to cater to the growing legion of boomers who opt to hit U.S. roadways in lieu of more expensive international trips.

It’s our job, here at Dent Research, to inform you of these demographics-driven industry trends. And to point you in the direction of the best investments you can make to take advantage of these trends.

That’s what we did last June, when we introduced you to the company that’s in the driver’s seat (pardon the pun) of the RV up swell: Thor Industries (NYSE: THO).

Thor is the ideal candidate for our Boom & Bust portfolio, which focuses on companies that fit three broad goals:

Winter Season Shakeout Winners — These are the companies with significant market share and strong balance sheets. Both are necessary for companies to survive these tough times of slow-to-negative growth, driving all but the best out of business.

Demographic Trend Followers — Companies that serve the needs and wants of our largest and most powerful generation of peak spenders — the baby boomers — naturally enjoy a demand-driven tailwind.

Income Producers — Companies that reward shareholders with monthly or quarterly dividend payments are in high demand. With Treasury bonds paying practically nothing, income investors must turn to dividend-paying stocks for yield.

Thor Industries fits the bill in each of these categories. The company commands the largest share of the RV market (at 36%) and has a rock-solid balance sheet with absolutely ZERO debt and more than $100 million in cash.

It obviously caters to the baby boomer demographic, enjoying record demand growth in the past three years. And what’s more, Thor’s stock pays a dividend that’s worth about 1.8% per year.

Since May 2013, Thor has proven to be a great investment, beating the S&P 500’s 10% gain by a 20% spread. Take a look…

See larger image

Thor’s stock reached a peak of $59 a share in late October, before falling back with the broad market. I think the stock will easily reach $59 again this year, making the recent pullback an opportune time to buy in.

Thor’s strong balance sheet provides stability in a low-growth economy. And its position in the fast-growing RV market should boost revenues and profits for years to come. This is one stock that should be in every investor’s economic winter season portfolio.

If you haven’t already done so, pick up some shares of Thor today.

And if you aren’t already subscribed to Boom & Bust, click here to join now and give yourself the chance to jump on these trends EARLY!

Why Winners Keep Winning (And Losers Keep Losing)

If “buy-and-hold” and the notion that you can’t beat the market have left you short of your personal and retirement goals, then you’re going to want to hear the truth about passive and active investing.

Chances are if you’re more than 25 years old, you think it’s impossible to “beat the market!” But you CAN beat the market… you just need to use the right strategy! Find out more in our new report from Adam O’Dell,, Why Winners Keep Winning (And Losers Keep Losing)!

LEARN MORE
Categories: Investing

About Author

Adam O'Dell has one purpose in mind: to find and bring to subscribers investment opportunities that return the maximum profit with the minimum risk. Adam has worked as a Prop Trader for a spot Forex firm. While there, he learned the fundamentals of trading in the world’s largest market. He excelled at trading the volatile currency markets by seeking out low-risk entry points for trades with high profit potential. An MBA graduate and Affiliate Member of the Market Technicians Association, Adam is a lifelong student of the markets. He is editor of our hugely successful trading service, Cycle 9 Alert.