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Camping World (CWH) Soars 10.6%: Is Further Upside Left in the Stock?

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Camping World (CWH - Free Report) shares soared 10.6% in the last trading session to close at $41.98. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 1.7% loss over the past four weeks.

Camping World extended its rally for the second straight day, driven by optimism over its deal to acquire Nielson RV, which led BMO Capital Markets to upgrade its recommendation. The upgraded recommendation was supported by an enhanced outlook for the recreational vehicle industry. Moreover, the analyst believes that acquisition of smaller dealerships will enable the company focus on its higher-margin business. Notably, the acquisition deal comprises of two RV Dealership locations – one in St. George, UT and the second in Hurricane, UT. The company expects to conclude the deal in Spring 2021.

Price and Consensus

Price Consensus Chart for Camping World

This recreational vehicle retailer and services provider is expected to post quarterly earnings of $0.59 per share in its upcoming report, which represents a year-over-year change of +2066.7%. Revenues are expected to be $1.27 billion, up 23.4% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Camping World, the consensus EPS estimate for the quarter has been revised 134.6% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on CWH going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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