Please ensure Javascript is enabled for purposes of website accessibility

Why Camping World Is Jumping 10% Today

By Rich Duprey – Updated Sep 9, 2020 at 12:06PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The RV dealer is making a habit out of rising by leaps and bounds.

What happened

Shares of Camping World Holdings (CWH -4.97%) were jumping 10% higher in morning trading Tuesday after a JPMorgan analyst upgraded the recreational vehicle dealer to overweight.

So what

Analyst Ryan Brinkman told investors in a note this morning that Camping World will benefit from "demand tailwinds" as consumers look to get away from populous areas to avoid contracting COVID-19. He also raised his price target to $40 per share from $30, a 33% increase from where the RV dealer closed on Friday.

An RV in the wilderness

Image source: Getty Images.

Now what

Brinkman said the sales momentum that began in the second quarter has definitely carried over into the third, indicating there may be a fear over additional COVID-19 outbreaks.

Camping World's stock has gone stratospheric since the pandemic was declared, rising almost 900% from its March low point. Analysts still forecast the RV dealer will grow earnings 36% annually for the next five years. And with the stock trading at a fraction of its sales and just four times the free cash flow it produces, there does seem to be upside remaining to the shares.

Last week, CEO Marcus Lemonis seemed to agree there was still a lot of money to be made on the stock as he made his 14th open market purchase in less than a month. He has made three more transactions since then.

Rich Duprey has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Camping World Holdings. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Camping World Holdings, Inc. Stock Quote
Camping World Holdings, Inc.
$24.68 (-4.97%) $-1.29

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/30/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.