Forget Helbiz, Buy These 3 Recreational Vehicle Stocks Instead
StockNews
Published Sep 22, 2021 01:04PM ET
Updated Sep 22, 2021 01:30PM ET
Forget Helbiz, Buy These 3 Recreational Vehicle Stocks Instead
With solid progress on the vaccination front and the easing of distancing restrictions, the recreational vehicle industry has regained momentum this year. Although Helbiz (HLBZ) has failed capitalize on the industry’s recovery owing to its shaky fundamentals—and could witness a decline in its share price in the near term—we think BRP (NASDAQ:DOOO), Camping World (CWH), and Winnebago Industries (NYSE:WGO) are well-positioned to cash in on the industry trends and deliver solid returns. So let’s discuss these names. Read on. The recreational vehicle (RV) industry suffered a decline in sales last year as consumers put their discretionary spending on hold. But the easing of pandemic restrictions due to speedy progress in COVID-19 vaccination, and shifting recreational preferences by consumers toward outdoor activities, have fueled the industry’s recovery this year. RV shipments are projected to reach a new high in 2022, generating a 4% rise in 2021. In addition, the global market for recreational vehicles is expected to reach $68.1 billion by 2026, registering a 2.7% CAGR.
Although shares of micro-mobility leader Helbiz, Inc. (HLBZ) surged more than 190% in price yesterday on the news of its streaming partnership with Amazon (NASDAQ:AMZN), the company’s unstable financials and bleak growth potential may cause the stock to retreat in the near term. In its last reported quarter, HLBZ’s loss from operations increased 152.8% to $500,340, and its net loss grew 168.5% to $518.200. Furthermore, analysts expect its EPS to decline at a 15.6% rate per annum over the next five years. Also, its EPS is expected to remain negative until at least 2022.
Conversely. we think industry participants BRP Inc . (DOOO), Camping World Holdings, Inc. (NYSE:CWH), and Winnebago Industries, Inc. (WGO), with solid sales growth and stable financials, are better positioned to cash in on the industry’s rebound and deliver solid returns in the near term.
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