Wall Street Bullish on Thor Industries Stock

July 2, 2010 by RV Business Leave a Comment

Investors in Thor Industries can breathe a sigh of relief. The maker of recreational vehicles announced on Thursday evening that it has just become current with its delinquent regulatory filings. And it appears that no major restatements will be necessary. That’s pushing shares up nearly +9% in Friday trading, according to Street Authority.

Could more gains be in the offing? We recently noticed the surprising strength from rival Winnebago Industries. At the time, Winnebago said demand for its motorhomes is rising sharply (though curiously, Winnebago’s shares have slid back more than -20% since then).

Action to Take : Shares of Thor are fairly cheap, at around 10 times next year’s EPS forecast of $2.40. And it’s worth noting that the economy is still in a funk, and subsequent earnings may be even more robust. Shares of Thor fell from $35 to $25 in the past two months, but now look set to climb back up.

Schaeffer’s Investment Research noted, “Thor is the biggest gainer on the S & P 500 Index, rallying more than 9.5% to trade back above the 25 level and its 10-day and 20-day moving averages. Thor has not closed a session above this trendline duo since May 13. The move could be putting pressure on short-sellers, as more than 5% of the stock’s float has been sold short.”

Thor stock climbed by 11.36% and closed at $26.18 on high volume of 2.02 million shares, above its average volume of 1.11 million shares.

Meanwhile, Winnebago has filed its 10-Q with the Securities and Exchange Commission. Click here to read it.