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Lazydays (LAZY) Acquires Orangewood RV Center in Arizona

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Lazydays Holdings, Inc. acquired a recreational vehicles (RV) dealership, Orangewood RV Center, in Surprise, AZ.

This new store location marks the company’s 24th location, taking it a step forward in growing its nationwide network along with strengthening its presence in the Western region. Upon acquisition, the company renamed the store as “Lazydays RV of Phoenix at Arrowhead.” The company expects this store to generate approximately $40 million in annualized revenues.

This store location will continue to provide high-quality new inventory from Grand Design, Keystone, KZ, and Starcraft. The company believes that this strategic move will allow it to offer top-tier RV options to its valued customers in Arizona.

Following the announcement, shares of LAZY declined 4.2% during the trading hours but gained 2.8% in the after-hours trading session on Nov 22.

Expansion Plans Drive Growth

Lazydays tends to focus on continuous expansion in the prime markets through dealership acquisitions and greenfield locations. From January 2020 to November 2023, the company expanded its locations from seven to 24.

Lazydays has completed five acquisitions this year. On Nov 6, 2023, the company acquired RVzz, an RV dealership located in St. George, UT. This acquisition marked the 23rd location in its growing nationwide network. The company anticipates $35 million in annualized revenues from this store. Furthermore, on Aug 8, the company acquired Century RV in Longmont, CO, renaming the store as “Lazydays RV of Denver at Longmont.” This acquisition strengthened the market hold of Lazydays RV in Denver and about $50 million in revenues annually are expected from this store.

Moreover, year to date, the company has opened three greenfield locations. Lazydays has high expectations from its newly-opened greenfield locations, including Fort Pierce, FL. The company believes that the expansion of its current dealership facilities will generate incremental revenue opportunities in the coming period.

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Shares of LAZY have declined 46.6% in the past three months compared with the Zacks Leisure and Recreation Products industry’s 11.4% decrease. Although the company underperformed its industry, its accretive expansion initiatives are quite likely to push forward its growth momentum in the upcoming period.

Zacks Rank & Key Picks

Lazydays currently carries a Zacks Rank #5 (Strong Sell).

Here are some better-ranked stocks that investors may consider from the Zacks Consumer Discretionary sector.

Royal Caribbean Cruises Ltd. (RCL - Free Report) sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.

It has a trailing four-quarter earnings surprise of 28.3%, on average. The stock has surged 80.8% in the past year. The Zacks Consensus Estimate for RCL’s 2023 sales and earnings per share (EPS) suggests rises of 57.6% and 187.9%, respectively, from the year-ago period’s levels.

Live Nation Entertainment, Inc. (LYV - Free Report) currently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 37.5%, on average. The stock has increased 28.5% in the past year.

The Zacks Consensus Estimate for LYV’s 2023 sales and EPS indicates 28.7% and 137.5% rise, respectively, from the year-ago period’s levels.

Stride, Inc. (LRN - Free Report) currently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 44.3%, on average. The stock has gained 62.9% in the past year.

The Zacks Consensus Estimate for LRN’s fiscal 2024 sales and EPS suggests an increase of 9.1% and 34.7%, respectively, from the year-ago period’s levels.


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