Buy Patrick Industries (PATK) makes building and component products for the recreational vehicle, manufactured housing and industrial markets. Like portfolio holding Drew Industries (DW), Patrick is enjoying the secular rise in demand for RVs. Earnings are expected to grow almost 30% this year.

Jump on board as baby-boomers and millennials pump up demand for RVs and the ensuing parts that Patrick manufactures and distributes. Positive sentiment from dealers and RV manufacturers support continued growth. The popularity of RVs with younger first-time customers is broadening market potential.

Earnings grew 35% in the first half of this year and are expected to grow 24% in the second half. Growth in 2017 is expected to slow to 16% but Patrick has been able to zoom past estimates by taking market share and acquiring complementary component companies. Our target is based on 20 times 2017 estimates.

Target $80