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Are Investors Undervaluing Camping World (CWH) Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company to watch right now is Camping World (CWH - Free Report) . CWH is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 15.45, which compares to its industry's average of 19.97. Over the past year, CWH's Forward P/E has been as high as 20.68 and as low as -51.72, with a median of 8.62.

Investors should also note that CWH holds a PEG ratio of 1.29. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CWH's PEG compares to its industry's average PEG of 1.70. CWH's PEG has been as high as 1.78 and as low as -4.57, with a median of 0.79, all within the past year.

These are just a handful of the figures considered in Camping World's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CWH is an impressive value stock right now.


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