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Camping World (CWH) to Boost Footprint by Acquiring Genuine RV

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Camping World Holdings, Inc. (CWH - Free Report) is set to acquire Genuine RV, including locations in Texarkana and Nacogdoches, TX, and Idabel, OK.

This new acquisition aligns with the company’s goal to increase its dealership count to more than 320 locations over the next five years. Post the acquisition, Camping World’s Texas and Oklahoma location counts will increase to 13 and six, respectively. This strategic transaction is expected to close in the second quarter of 2024.

Following the announcement, shares of CWH gained 3.6% during the trading hours on Jan 8.

Buyout Initiatives Boost Growth

Camping World primarily focuses on strategic investments in acquisitions to increase its footprint. It aims to maximize the returns of working capital to continue its supercharged acquisition plan, which directly sparks its growth prospects.

During third-quarter 2023 earnings call, Camping World stated that it added 16 locations over the past year (from Oct 2022) and intends to continue to add to its growth pipeline. On Oct 23, 2023, the company inked a deal to acquire Travelcamp RV, which will add 12 locations across Florida, Georgia, North Carolina, South Carolina and Texas by January 2024.

On Jan 2, 2024, CWH closed the acquisition of Ashley Outdoors in Salem, AL. Including this location, the company intends to add 15 dealership locations in the first quarter of 2024 through a mix of opening existing facilities and closing previously announced buyouts. Given the solid pipeline of acquisitions, the company expects to end 2024 with more than 220 locations.

Zacks Investment Research
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Owing to the above tailwinds, shares of this provider of services, protection plans, products and resources for recreational vehicle enthusiasts gained 39.4% in the past three months, outperforming the Zacks Leisure and Recreation Services industry’s 11.4% growth.

Zacks Rank & Key Picks

Camping World currently carries a Zacks Rank #3 (Hold).

Here are some better-ranked stocks from the Zacks Consumer Discretionary sector.

Strategic Education, Inc. (STRA - Free Report) presently 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 7.3%, on average. The stock has gained 5.5% in the past year. The Zacks Consensus Estimate for STRA’s 2024 sales and earnings per share (EPS) suggests rises of 5.7% and 26.8%, respectively, from the year-ago period’s levels.

JAKKS Pacific, Inc. (JAKK - Free Report) currently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 61.8%, on average. The stock has surged 81.9% in the past year.

The Zacks Consensus Estimate for JAKK’s 2024 sales indicates growth of 3.6%, while EPS suggests a decline of 13.5% rise, respectively, from the year-ago period’s levels.

American Public Education, Inc. (APEI - Free Report) currently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 23.2%, on average. The stock has declined 20.1% in the past year.

The Zacks Consensus Estimate for APEI’s 2024 sales and EPS suggests growth of 2.5% and 115.8%, respectively, from the year-ago period’s levels.


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