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3 Reasons Why Camping World (CWH) Stock is Worth Buying
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Shares of Camping World Holdings, Inc. (CWH - Free Report) have outperformed the industry in the last three months. While the stock has rallied 21.5%, the industry gained just 9.1% in the same time period.
Moreover, this Zacks Rank #2 (Buy) company that provides a portfolio of services, protection plans, products, and resources for recreational vehicle (RV) owners and camping enthusiasts has been witnessing upward estimate revisions. This, in turn, reflects analysts’ optimism on Camping World’s growth prospects. In fact, the Zacks Consensus Estimate for current-quarter and current-year earnings has moved up 7% and 14.2%, respectively, over the last 60 days.
Apart from these, the company has a number of other aspects too, which make it an attractive investment option at this point.
A Unique Operating Model
Camping World has a unique operating model whereby it sells a broad portfolio of products and services across a growing database of consumers being driven by its national network of retail locations that cater to RV, boating and outdoor enthusiasts. This is aiding the company in delivering excellent top- and bottom-line results.
Notably, though the company’s business model has conventionally been focused on the RV owner, Camping World sees an extensive opportunity to leverage its products and services across the larger base of outdoor lifestyle consumers, going forward.
Earnings & Revenue Growth
Arguably, nothing is more important than earnings growth as surging profit levels are often an indication of strong prospects (and stock price gains) for the company in question.
While Camping World has a historical EPS (earnings per share) growth rate of 37.4%, compared with the industry average of 17.7%, investors should really focus on its projected growth. Here also the company is looking to grow at a rate of 37.4%, thoroughly crushing the industry average, which calls for EPS growth of just 13.6%.
Propelling the earnings forward is the company’s solid revenue growth story. It should be noted that projected sales growth for the current year is 14.7%, much higher than the broader industry’s estimate of 4.6%.
Valuation Looks Rational
Camping World has a Value Style Score of A, under our style score system. This score condenses all valuation metrics into one actionable score that helps investors steer clear of ‘value traps’ and identify stocks that are truly trading at a discount.
Furthermore, the company currently possesses a forward P/E of 17x and P/S of 0.26x. When compared with the industry average of 19.41x and 1.38x, respectively, we see that Camping World is undervalued compared to many of its peers, at least on the basis of these metrics.
Royal Caribbean’s earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, with an average beat of 3.52%. Meanwhile, for 2017, EPS is expected to improve 22.4%.
Town Sports’ pulled off positive earnings surprise in each of the trailing four quarters with an average beat of 52.48%. Further, for 2017, EPS is projected to grow 60%.
The Zacks Consensus Estimate for ILG’s 2017 earnings climbed 2.6% over the past 60 days. Moreover, the trailing four-quarter average earnings surprise is a positive 24.40%.
One Simple Trading Idea
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
This proven stock-picking system is grounded on a single big idea that can be fortune shaping and life changing. You can apply it to your portfolio starting today.
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3 Reasons Why Camping World (CWH) Stock is Worth Buying
Shares of Camping World Holdings, Inc. (CWH - Free Report) have outperformed the industry in the last three months. While the stock has rallied 21.5%, the industry gained just 9.1% in the same time period.
Moreover, this Zacks Rank #2 (Buy) company that provides a portfolio of services, protection plans, products, and resources for recreational vehicle (RV) owners and camping enthusiasts has been witnessing upward estimate revisions. This, in turn, reflects analysts’ optimism on Camping World’s growth prospects. In fact, the Zacks Consensus Estimate for current-quarter and current-year earnings has moved up 7% and 14.2%, respectively, over the last 60 days.
Apart from these, the company has a number of other aspects too, which make it an attractive investment option at this point.
A Unique Operating Model
Camping World has a unique operating model whereby it sells a broad portfolio of products and services across a growing database of consumers being driven by its national network of retail locations that cater to RV, boating and outdoor enthusiasts. This is aiding the company in delivering excellent top- and bottom-line results.
Notably, though the company’s business model has conventionally been focused on the RV owner, Camping World sees an extensive opportunity to leverage its products and services across the larger base of outdoor lifestyle consumers, going forward.
Earnings & Revenue Growth
Arguably, nothing is more important than earnings growth as surging profit levels are often an indication of strong prospects (and stock price gains) for the company in question.
While Camping World has a historical EPS (earnings per share) growth rate of 37.4%, compared with the industry average of 17.7%, investors should really focus on its projected growth. Here also the company is looking to grow at a rate of 37.4%, thoroughly crushing the industry average, which calls for EPS growth of just 13.6%.
Propelling the earnings forward is the company’s solid revenue growth story. It should be noted that projected sales growth for the current year is 14.7%, much higher than the broader industry’s estimate of 4.6%.
Valuation Looks Rational
Camping World has a Value Style Score of A, under our style score system. This score condenses all valuation metrics into one actionable score that helps investors steer clear of ‘value traps’ and identify stocks that are truly trading at a discount.
Furthermore, the company currently possesses a forward P/E of 17x and P/S of 0.26x. When compared with the industry average of 19.41x and 1.38x, respectively, we see that Camping World is undervalued compared to many of its peers, at least on the basis of these metrics.
Other Stocks to Consider
Some other top-ranked stocks in the broader Consumer Discretionary sector include Royal Caribbean Cruises Ltd. (RCL - Free Report) , Town Sports International Holdings, Inc. and ILG, Inc. carrying the same bullish rank as Camping World. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Royal Caribbean’s earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, with an average beat of 3.52%. Meanwhile, for 2017, EPS is expected to improve 22.4%.
Town Sports’ pulled off positive earnings surprise in each of the trailing four quarters with an average beat of 52.48%. Further, for 2017, EPS is projected to grow 60%.
The Zacks Consensus Estimate for ILG’s 2017 earnings climbed 2.6% over the past 60 days. Moreover, the trailing four-quarter average earnings surprise is a positive 24.40%.
One Simple Trading Idea
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
This proven stock-picking system is grounded on a single big idea that can be fortune shaping and life changing. You can apply it to your portfolio starting today.
Learn more >>