Shares of boat and RV manufacturing companies experienced a surge on Thursday, reaching new 52-week highs. Investors were drawn in by the prospect of a potential interest rate cut from the Federal Reserve in the coming year.
RV manufacturers Winnebago Industries and Thor Industries saw their shares rise by more than 5%, reaching their highest levels since 2021. Camping World Holdings, a chain of RV dealerships, also experienced an 8% climb in share prices.
Boat manufacturer Brunswick witnessed an almost 7% increase in shares, marking a new 52-week high and moving closer to its all-time high achieved in 2021. Rival boat maker Malibu Boats saw a 5% rise, while boat-and-yacht retailer MarineMax also witnessed a 5% increase.
The sales of boats and RVs received a significant boost from 2020 through 2022 as Americans sought pandemic-safe outdoor activities. However, this year, the rise in interest rates has negatively impacted sales of RVs, boats, and other high-priced discretionary items that are typically financed over extended purchase plans.
Other companies that heavily rely on financed sales also benefited from this trend. Harley-Davidson saw an 8% surge in shares, while ATV-and-motorcycle maker Polaris experienced a 5% increase.