What happened

Camping World Holdings (CWH -1.09%) enjoyed an excellent May as its share price climbed 20.4%, according to S&P Global Market Intelligence. As of the close of trading Tuesday, the stock price was up by about 26.5% year to date, trading at $28.46 per share.

The major market indexes were mixed in May: The S&P 500 was up just 0.3% for the month, while the Dow Jones Industrial Average was down 3.5%. The Nasdaq Composite, meanwhile, gained 5.9%.

So what

Camping World, the leading RV dealership chain in the country, got a lift after delivering its first-quarter results on May 2. Revenue was down 11% to $1.5 billion, while gross profit dropped 21% year over year to $441 million in the quarter. Earnings per share were just $0.05, down from $1.15 per share a year earlier, but that beat analysts' consensus estimate for a $0.01 per share net loss.

The market for new RV sales has become difficult, particularly compared to how things were during the past couple of years when RV sales jumped as people sought ways to travel while maintaining social distancing during the hotter phases of the pandemic. Camping World's new vehicle revenue was down 22.5% year over year to $647 million in the first quarter, while new vehicle sales fell 27% to 13,912 units.

However, the company got a better-than-expected boost from used RV sales: That segment posted a record $445 million in revenue, up 10.4% year over year. Used RV sales also set a volume record with 12,432 units sold, a rise of 13.3%. The company's Good Sam membership club also had a decent quarter, with revenue up 4% year over year to $46.4 million.

Now what

Camping World has been busy on the acquisition front. In May, it acquired I-90 RV, located in Billings, Mont., where it will open a Montana supercenter and enter that market.

On June 5, it announced plans to buy Roy Robinson RV Center in the greater Seattle area. That will be its seventh location in the state of Washington and enhance its parts and services operation there, as the facility has 24 bays and a state-of-the-art collision center.

Chairman and CEO Marcus Lemonis said the company is doing a "deep dive" into the company's capital allocation strategy to determine the most prudent allocation of capital. That will mean more acquisitions.

"The dealership acquisition landscape remains more robust than I have ever seen, and we believe we can materially grow our business over the next five years, targeting a 50% increase in our store count," Lemonis said.

Its price-to-earnings ratio is now 11.6, up from 4.6 at the end of the first quarter. This remains a tough market for earnings, so the stock is probably a hold or watch at this point -- but monitor that capital allocation/growth strategy.