Camping World (CWH) Soars 10.4%: Is Further Upside Left in the Stock?

Camping World (CWH) shares rallied 10.4% in the last trading session to close at $13.91. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 23.9% loss over the past four weeks.

Following President Trump's announcement to suspend U.S. tariffs on most countries for 90 days, Camping World shares soared, reflecting renewed investor optimism.

This recreational vehicle retailer and services provider is expected to post quarterly loss of $0.23 per share in its upcoming report, which represents a year-over-year change of +42.5%. Revenues are expected to be $1.44 billion, up 5.4% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Camping World, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on CWH going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Camping World is a member of the Zacks Leisure and Recreation Services industry. One other stock in the same industry, Royal Caribbean (RCL), finished the last trading session 16.3% higher at $209.51. RCL has returned -13% over the past month.

For Royal Caribbean

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This article originally published on Zacks Investment Research (zacks.com).

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