Patrick Industries Thrives During The Pandemic

Shock Exchange
13.08K Followers

Summary

  • PATK reported gaudy Q4 revenue growth. RV sales and acquisitions fueled the company.
  • Margins expanded due to increased scale. This narrative could last for a few more quarters.
  • Once the economy reopens, travel via RVs could subside. This could hurt PATK's growth.
  • At 14x EBITDA I rate the stock a hold.

White caravans in a park
Photo by uptonpark/iStock via Getty Images

I have been bearish on the global economy and cyclical names like Patrick Industries (NASDAQ:PATK) for years. I surmised the global economy would eventually face headwinds after the Federal Reserve reduced stimulus efforts. Such an

I also run Shocking The Street where I attempt to find mispriced stocks through fundamental research.

This article was written by

13.08K Followers
The Shock Exchange has a B.A. in economics and MBA from a top 10 business school. He has over 10 years of M&A / corporate finance experience. Currently head the New York Shock Exchange, financial literacy program based in Brooklyn, NY.His book, "Shock Exchange: How Inner-City Kids From Brooklyn Predicted the Great Recession and the Pain Ahead", predicted pain ahead for the U.S. economy and financial markets.In 2014 the law firm of Kirby, McInerney, LLP brought a class action lawsuit against Molycorp, Inc. for "materially misleading statements" in its financial statements. Kirby, McInerney used investigative journalism from the Shock Exchange to buttress its case. That's the discipline the Shock Exchange brings to every situation he covers for SA.

Analyst’s Disclosure:I am/we are short MRNA. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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