Camping World Holdings’ large players volume has exploded higher as the stock flushed from an announced secondary offering of 6,700,000 shares of its Class A common stock.
Camping World Holdings has been on a crazy acquisition spree of RV dealerships. Camping World is actively seeking opportunities to acquire quality dealerships with strong management, brand recognition and a solid customer base in markets where Camping World has an existing presence.
On October 23, 2017, the company announced the planned acquisition of America Choice RV, in Central Florida.
On October 17, 2017, Camping World Holdings announced the planned acquisition of Cooper’s RV Center, in the greater Pittsburgh market.
On October 12, 2017, Camping World Holdings announced plans to purchase Uncle Dan’s Outfitters, a specialty retailer of outdoor gear, apparel and camping supplies.
Camping World Holdings Analyst Buy Rating
On October 24, 2017, analysts at Monness Crespi & Hardt reiterated their Buy rating and set a price target of $47. Monness Crespi is one of the most followed firms on Wall Street because of their excellent track record.
On October 1, 2017, Credit Suisse Group, another popular analyst firm with a great track record, reiterated their Buy rating on Camping World Holdings.
Camping World Holdings, Inc. is a provider of a portfolio of services and resources for recreational vehicle (RV) enthusiasts. The Company offers emergency roadside assistance; property and casualty insurance programs; travel assist programs; extended vehicle service contracts; co branded credit cards; vehicle financing and refinancing; club memberships, new vehicles; used vehicles; parts and service, including RV accessories and supplies, and finance and insurance. You can read more about the company here.
Camping World Holdings Stock Chart
The stock dropped on the announcement of a proposed secondary stock offering while large players volume has exploded higher. I found this stock by using the screener I created on Chartmill called GST Positive Divergence. You can find out how to get your hands on this stock screener here.
I think CWH looks like a decent setup pattern. Prices have been consolidating lately. A pullback is taking place, which may present a good opportunity for an entry. There is very little resistance above the current price. Very recently a Pocket Pivot signal (blue dot) was observed. This is another bullish sign.
Camping World Holdings Inc Review
CWH has a Return On Equity of 43.81%. This is among the best returns in the industry. The industry average is 16.35%. CWH outperforms 86% of its industry peers. CWH has a Profit Margin of 2.54%. This is better than the industry average of 1.90%. CWH has a Return On Assets of 4.29%. This is about inline with the industry average of 4.02%. CWH has a Piotroski-F score of 4. This indicates an average health and profitability for CWH.
The Price/Earnings Ratio is 5.33, which indicates a rather cheap valuation of CWH. Compared to an average industry Price/Earning Ratio of 17.22, CWH is valued rather cheaply. On top of this CWH is cheaper than 93% of the companies listed in the same industry. With a Forward Price/Earnings Ratio of 18.16, CWH is valued rather expensively. With a price book ratio of 15.76, CWH is valued rather expensively. Compared to an average industry price book ratio of 2.79, CWH is valued more expensive than its industry peers. 100% of the companies listed in the same industry are valued cheaper.
CWH shows a strong growth in revenue. In the last year, revenue has grown by 35.37%. Measured over the past 5 years, CWH shows a quite strong growth in revenue. Revenue has been growing by 13.25% on average per year. Based on estimates for the next 2 years, CWH will show a decrease in Earnings Per Share. The EPS will decrease by -4.22% on average per year.
An Altman-Z score of 3.23 indicates that CWH is not in any danger for bankruptcy at the moment. A Current Ratio of 1.34 indicates that CWH should not have too much problems paying its short term obligations. The Current Ratio is inline with the industry averages, which is at 1.19. The Quick Ratio is inline with the industry averages, which is at 0.38. The Altman-Z score is inline with the industry averages, which is at 3.23. The Piotroski-F score of CWH is 4. This is a neutral score and indicates average health and profitability for CWH. A Quick Ratio of 0.38 indicates that CWH may have some problems paying its short term obligations. CWH has one of the worst Debt to Equity ratios in its industry. 95% of its industry peers require less debt for financing their operations.
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