Why Camping World (CWH) Might Be Well Poised For A Surge

Camping World (CWH) closed the most recent trading day at $37.08, moving -1.77% from the previous trading session. This move lagged the S&P 500's daily gain of 0.08%. Meanwhile, the Dow lost 0.56%, and the Nasdaq, a tech-heavy index, lost 0.42%.

Coming into today, shares of the recreational vehicle retailer and services provider had lost 0.94% in the past month. In that same time, the Consumer Discretionary sector lost 1.36%, while the S&P 500 gained 0.22%.

Camping World will be looking to display strength as it nears its next earnings release. On that day, Camping World is projected to report earnings of $0.73 per share, which would represent year-over-year growth of 52.08%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.32 billion, up 16.7% from the year-ago period.

Investors should also note any recent changes to analyst estimates for Camping World. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Camping World is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Camping World is holding a Forward P/E ratio of 6.01. This valuation marks a discount compared to its industry's average Forward P/E of 37.91.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 90, putting it in the top 36% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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Source : https://finance.yahoo.com/news/camping-world-cwh-stock-sinks-225010145.html

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Camping World Holdings 1 Month Price Returns (Daily)

Source:YCharts

Camping World Holdings 1 Month Price Returns (Daily)