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Camping World (CWH) Outpaces Stock Market Gains: What You Should Know

In the latest trading session, Camping World (CWH) closed at $38.31, marking a +0.92% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.51%.

Heading into today, shares of the recreational vehicle retailer and services provider had lost 4.62% over the past month, lagging the Consumer Discretionary sector's gain of 0.7% and the S&P 500's gain of 1.75% in that time.

Wall Street will be looking for positivity from CWH as it approaches its next earnings report date. On that day, CWH is projected to report earnings of $2.23 per share, which would represent year-over-year growth of 37.65%. Our most recent consensus estimate is calling for quarterly revenue of $2.03 billion, up 26.14% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.54 per share and revenue of $6.58 billion, which would represent changes of +51.37% and +20.83%, respectively, from the prior year.

Any recent changes to analyst estimates for CWH should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 9.72% higher. CWH is holding a Zacks Rank of #1 (Strong Buy) right now.

Digging into valuation, CWH currently has a Forward P/E ratio of 6.85. Its industry sports an average Forward P/E of 38.3, so we one might conclude that CWH is trading at a discount comparatively.

We can also see that CWH currently has a PEG ratio of 0.2. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Leisure and Recreation Services was holding an average PEG ratio of 1.59 at yesterday's closing price.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 192, putting it in the bottom 25% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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