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Camping World (CWH) Dips More Than Broader Markets: What You Should Know

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Camping World (CWH - Free Report) closed at $38.50 in the latest trading session, marking a -0.72% move from the prior day. This move lagged the S&P 500's daily loss of 0.47%.

Coming into today, shares of the recreational vehicle retailer and services provider had lost 3.51% in the past month. In that same time, the Consumer Discretionary sector lost 4.3%, while the S&P 500 gained 3.38%.

CWH will be looking to display strength as it nears its next earnings release, which is expected to be August 3, 2021. In that report, analysts expect CWH to post earnings of $2.22 per share. This would mark year-over-year growth of 37.04%. Our most recent consensus estimate is calling for quarterly revenue of $2.04 billion, up 27.16% from the year-ago period.

CWH's full-year Zacks Consensus Estimates are calling for earnings of $5.64 per share and revenue of $6.62 billion. These results would represent year-over-year changes of +54.1% and +21.47%, respectively.

Any recent changes to analyst estimates for CWH should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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 1.35% higher. CWH is currently a Zacks Rank #1 (Strong Buy).

Digging into valuation, CWH currently has a Forward P/E ratio of 6.88. Its industry sports an average Forward P/E of 41.96, so we one might conclude that CWH is trading at a discount comparatively.

Also, we should mention that CWH has a PEG ratio of 0.2. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Leisure and Recreation Services industry currently had an average PEG ratio of 1.53 as of yesterday's close.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 73, putting it in the top 29% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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