Tenting World (CWH) Hits Contemporary Excessive: Is There Nonetheless Room to Run?

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H.Did you pay attention to Camping World Holdings (CWH) stocks? Stocks were in motion for the last month, with the stock rising 19.5%. The stock hit a new 52-week high of $ 46 in the previous session. Camping World Holdings is up 65.4% year-to-date, compared to 1.9% for the Zacks Consumer Discretionary sector and 17.9% for the Zacks Leisure and Recreation Services industry.

What is driving the outperformance?

The stock has an impressive record of positive earnings surprises as it has not missed our earnings consensus estimate for the past four quarters. In its latest earnings report on February 25, 2021, Camping World reported earnings per share of $ 0.48 versus a consensus estimate of $ 0.24.

For the current fiscal year, Camping World expects earnings of $ 4.04 per share on sales of $ 6.03 billion. This corresponds to a change in EPS of 10.38% with a change in sales of 10.66%. For the next fiscal year, the company is expected to earn $ 3.9 per share on sales of $ 6.21 billion. This corresponds to a change compared to the previous year of -3.42% and 3.11% respectively.

Evaluation metrics

Camping World may be at a 52-week high right now, but what is the future for the stock? A key aspect of this question is looking at valuation metrics to determine if the company expects to move away from that level.

With that in mind, we can take a look at the Zacks Style Scores as they give investors an additional way to sort stocks (beyond the Zacks rank of a security). These styles are represented by grades from A to F in the categories of value, growth, and momentum, while there is also a combined VGM score. Investors should view style scores as a valuable tool that will help them select the most appropriate Zacks Rank stocks based on their individual investment style.

Camping World has a Value Score of A. The stock’s growth and momentum scores are A and B, respectively, which gives the company an A VGM score.

In terms of value breakdown, the stock is currently trading at 10.7 times the EPS estimate for the current fiscal year. Based on the trailing cash flow, the stock is currently trading at 21.9X versus its peer group average of 21.9X. In addition, the share has a PEG rate of 0.31. This is not enough to put the company in the top group of all stocks we cover in terms of value.

Zack’s rank

We also need to factor in the stock’s Zacks rank as this will replace any trend on the style score front. Fortunately, Camping World currently has a Zacks Rank 2 (Buy) thanks to favorable revisions to earnings estimates by covered analysts.

Since we encourage investors to pick stocks with a Zacks rank of 1 (strong buy) or 2 (buy) and a style score of A or B, it looks like Camping World meets the list of requirements. So it seems like Camping World stocks may have a little more room to run in the near future.

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The views and opinions expressed are those of the author and do not necessarily reflect those of Nasdaq, Inc.

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