Back to top

Image: Bigstock

Camping World (CWH) Gains But Lags Market: What You Should Know

Read MoreHide Full Article

In the latest trading session, Camping World (CWH - Free Report) closed at $41.50, marking a +0.68% move from the previous day. This move lagged the S&P 500's daily gain of 0.93%.

Heading into today, shares of the recreational vehicle retailer and services provider had gained 7.6% over the past month, outpacing the Consumer Discretionary sector's loss of 7.94% and the S&P 500's gain of 5.84% in that time.

Wall Street will be looking for positivity from CWH as it approaches its next earnings report date. This is expected to be May 4, 2021. In that report, analysts expect CWH to post earnings of $0.52 per share. This would mark year-over-year growth of 1833.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.27 billion, up 23.41% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.04 per share and revenue of $6.03 billion, which would represent changes of +10.38% and +10.66%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for CWH. These recent revisions tend to reflect the evolving nature of short-term business trends. 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 6.06% higher. CWH is currently a Zacks Rank #1 (Strong Buy).

Digging into valuation, CWH currently has a Forward P/E ratio of 10.65. For comparison, its industry has an average Forward P/E of 28.16, which means CWH is trading at a discount to the group.

Also, we should mention that CWH has a PEG ratio of 0.31. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Leisure and Recreation Services stocks are, on average, holding a PEG ratio of 1.99 based on yesterday's closing prices.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 175, which puts it in the bottom 32% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Camping World (CWH) - free report >>

Published in