Best Recreational Vehicle Stocks Right Now

Recreational vehicles (RVs) are popular with both millennials and affluent retirees. In the past decade, the RV industry has seen massive growth, even in the face of the COVID-19 pandemic. Though RV sales tend to follow the general movement of the economy, adding a few RV stocks can be an affordable way to invest in the automotive industry and complement auto stocks and funds. Here's what you need to know about recreational vehicle stocks.

Quick Look at the Best Recreational Vehicle Stocks:

• Camping World Holdings, Inc.
• REV Group Inc
• Winnebago Industries
• Polaris
• Johnson Outdoors Inc.

Overview

Recreational vehicles are vehicles used for camping, cross-country trips and other recreational purposes. An RV might be self-propelled, or it might require an attachment to a car or truck. Self-propelled RVs can sell for $40,000 to almost $1 million depending on the manufacturer and the features the RV offers.

The RV industry tends to follow the overall trend of the economy as a whole because they’re a recreational purpose. If the market and economy of the United States is up, RV sales tend to rise as consumers have more discretionary income. When the economy dips, RV sales dip as well. Despite this trend, the recreational vehicle industry has rebounded well since the Great Recession.

Companies that manufacture RVs often produce other motor vehicles as well. For example, Harley-Davidson (NYSE: HOG) manufactures motorcycles and accessories, while Winnebago (NYSE: WGO) recently expanded its production into motorboats as well as RVs. 

Best Online Brokers for Recreational Vehicle Stock

Whether you’re interested in purchasing RV stocks or you’re searching for more stocks under $5, you’ll need to open an account with a broker before you can begin investing. Your broker will execute buy and sell orders on your behalf. Most brokers now allow you to create an account online and begin trading from a convenient desktop platform.

Don’t have time to research broker options before you begin investing? Consider opening an account with one of our favorite online brokers below.  

Features to Look for in Recreational Vehicle Stock

When you’re comparing recreational vehicle stocks, look for these 3 key factors.

• A positive earning per share value: A company’s earnings per share (EPS) is calculated by dividing the total net profits by the number of outstanding shares. When you invest, look for companies with a positive EPS value — this indicates that the company is currently profitable.
• A dividend yield below 10%: If you’re considering investing in the RV industry to earn dividends and create a passive income stream, be mindful of each stock’s dividend yield. A dividend yield compares the current price of a stock with the company’s current annual dividend. 

As a general rule, you should search for stocks with dividend yields below 10% — a yield higher than 10% may indicate that the dividend is unsustainable and that a cut is coming soon.

• A wide variety of products and models: Most RV manufacturers are also involved in the production of other motor vehicles. Choosing an RV corporation that offers additional vehicles, parts or accessories can allow you to invest in multiple industries for the price of a single stock. 

Revving Up Your Portfolio With Recreational Vehicle Stocks

Adding a few recreational vehicle stocks to your portfolio can be an excellent way to add diversity to your portfolio. However, it’s important to remember that one particular industry or product should never make up the majority of your portfolio. Use RV stocks to complement a larger portfolio made up of total market index funds, mutual funds and large-cap stocks to protect your investments while also leaving yourself room for profit. 

Continue reading: BEST TRAVEL STOCKS