What happened

Shares of Camping World Holdings (CWH -3.76%) traded up 10.2% on Tuesday as investors seemed to warm to the idea that the troubled RV retailer, which had seen its shares fall by 30% since the beginning of May, was entering oversold territory.

So what

It's been a bumpy road for Camping World, with the company reporting a surprise loss back in March, and fighting off allegations that its celebrity CEO had manipulated the market when taking the company public.

An RV campsite in front of a lake in the mountains

Image source: Getty Images.

Marcus Lemonis, Camping World chairman and CEO and a private-equity veteran who's best known as host of CNBC's The Profit, in April was the target of a lawsuit claiming that he and associates took Camping World public despite knowing it was "in no way ready to be a public company."

The merits of the claim are in dispute, but Camping World's performance has certainly underwhelmed. Even after the Tuesday rally, shares are down 46% from the initial public offering.

The rally coincides with some good recent headlines for Camping World. Last week the company declared a special cash dividend, expressing confidence in the business's long-term outlook. And over the weekend, Barron's noted Lemonis' efforts to transform Camping World, and the endorsement of one hedge fund that's buying up more shares as he works.

Now what

Even if the stock has bottomed out, Camping World still has an uphill road to climb. It has embarked on a restructuring plan, aimed at reducing inventory levels and bringing down capital expenditures. The company could also use some help from factors outside of its control, namely a reversal of waning consumer interest in RVs.

But at least on Tuesday, investors seemed willing to hope the stock has finally reached bottom, and is more likely to head up than down from here.