The use of recreational vehicles (RV) has increased significantly over the past few years as people started to take an active interest in camping and offbeat recreational travels. Also, RVs providing a self-contained way of traveling gained popularity amid the social distancing mandates since the onset of the pandemic. RV stocks Winnebago (WGO) and Thor (THO) have benefitted from the trends. But which of these stocks is a better choice now? Read more to find out.Winnebago Industries, Inc. (NYSE:WGO) manufactures and sells recreation vehicles (RVs) and marine products primarily for leisure travel and outdoor recreation activities. On the other hand, Thor Industries , Inc. (NYSE:THO) also is engaged in designing, manufacturing, and selling RVs and related parts and accessories.
Demand for RVs reached record highs in the first half of the year, mainly driven by people’s active interest in camping and offbeat recreational travels. Moreover, the U.S. tax code treating RVs as second homes, providing owners tax advantage on RV purchase loans, the sales of these vehicles are on the rise.
The pandemic fueled the demand for RVs and RV rentals last year, as RVs offer a self-contained way to travel. As the vaccination progresses rapidly and people are once again engaging in outdoor activities and recreational travels, RV sales are expected to soar in the upcoming months. The RV market is expected to reach $48 billion by 2026, registering a CAGR of 7% during 2021-2026. Therefore, RV stocks WGO and THO should benefit.