Last Updated: 13 Sep 2024
Executive Summary
Camping World Holdings Inc. (CWH) is a leading recreational vehicle (RV) and outdoor retailer with a market capitalization of $999.15 million. The company has been facing challenges in recent quarters, with negative earnings per share (EPS) and declining revenue growth. However, analysts remain optimistic about the company's long-term prospects, with a consensus analyst target price of $26.7 and a majority of analysts recommending a buy or strong buy rating.
Company Overview
Camping World Holdings is headquartered in Lincolnshire, Illinois, and operates over 170 retail locations across the United States. The company offers a wide range of RV and outdoor products, including RVs, camping equipment, and accessories. The company also provides RV financing and insurance services.
Fundamental Analysis
Revenue: CWH's revenue for the latest twelve months (TTM) was $6.01 billion, representing a 5% decline year-over-year (YOY). The decline was primarily due to a decrease in RV sales.
Profitability: CWH's profitability metrics have been weak in recent quarters. The company reported a net loss of $27.7 million for the TTM, resulting in a negative profit margin of 2.2%.
Earnings: CWH's diluted EPS for the TTM was -$0.44, a significant decline from the positive EPS of $0.60 reported in the same period last year.
Valuation: CWH's trailing price-to-earnings (PE) ratio is not applicable due to negative earnings. However, the forward PE ratio is 12.72, which is below the industry average.
Technical Analysis
Trend: CWH's stock price has been trending down in recent months. The stock is currently trading below its 50-day and 200-day moving averages.
Support and Resistance: The stock has support at around $20 and resistance at around $25.
Momentum: The stock's momentum indicators are bearish, indicating that the downward trend is likely to continue in the short term.
Short Term Outlook
In the short term, CWH's stock price is likely to continue to decline. The company's weak earnings and declining revenue growth are weighing on the stock. Additionally, the stock's technical indicators are bearish, suggesting that the downward trend is likely to continue.
Long Term Outlook
Analysts remain optimistic about CWH's long-term prospects. The company has a strong brand and a loyal customer base. Additionally, the RV industry is expected to grow in the coming years, which should benefit CWH. However, the company needs to improve its profitability in order to unlock its full potential.
Analyst Recommendations
The majority of analysts covering CWH recommend a buy or strong buy rating. The consensus analyst target price is $26.7, which represents a potential upside of over 20% from the current stock price.
