Daily Stock Analysis: Camping World Holdings

Camping World Holdings Inc with the ticker (CWH) is a small-cap auto and truck dealerships company operating in the consumer cyclical business sector. This is the second of five consumer cyclical candidates competing for the fiftieth slot in my Viital folio. It is my first report on CWH for my Viital portfolio or any of my previous six portfolios.

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Camping World Holdings Inc provides services, protection plans, products, and resources for recreational vehicle enthusiasts across the United States.

The company operates its business through two reportable segments: Good Sam Services and Plans and RV and Outdoor Retail. It generates maximum revenue from the RV and Outdoor Retail segment.

RV and Outdoor Retail segment consists of all aspects of RV dealership operations, which includes selling new and used RVs, assisting with the financing of new and used RVs, selling protection and insurance related services and plans for RVs, servicing and repairing new and used RVs, installation of RV parts and accessories and others.

As of December 31, 2021, the company operated through a network of approximately 187 retail locations in 40 states of the United States. It serves customers through dealerships, and online and e-commerce platforms.

The company was founded in 1966 and is headquartered in Lincolnshire, Illinois.

Three key data points gauge any dividend equity or fund such as Camping World Holdings Inc:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

CWH Price

Camping’s price per share was $32.24 as of yesterday’s market close.  One year ago its price was $39.75. So, CWH’s share price fell by $7.51 or about 18.9% in the past year.

If Camping’s stock trades in the range of $20.00 to $40.00 this next year, its recent $32.24 share price might rise by $3.26 to reach $35.50 by next year. My $3.26 upside estimate is about $0.17  under the median of annual price target upsides projected by 9 analysts tracking CWH for brokers.

CWH Dividends

Camping’s most recently declared quarterly dividend of $0.625 is payable September 29th to shareholders on record as of September 13th (today).  So, you’ve little time to catch this coming dividend.

Since December 2016 CWH has paid variable quarterly dividends. The current forward-looking annual dividend of $2.50 casts an annual yield 7.75% as of yesterday’s $32.24 share price.

CWH Returns

Adding the $2.50 CWH annual dividend to my estimated one-year price upside estimate of $3.26 shows a $5.76 potential gross gain, per share, to be reduced by any costs to trade CWH shares.

At yesterday's $32.24 closing price, a little under $1000 would buy 31 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us $0.32 per share.

Subtract that maybe $0.32 brokerage cost from my estimated $5.76 gross gain estimate per share results in a net gain of $5.44 X 31 shares = $168.64 for a 16.8% net gain including a 7.75% forward-looking annual dividend yield.

Over the next year our $1K investment in Camping World Holdings Inc shares could generate $77.50 in cash dividends. Of course, a single share of CWH stock bought at yesterday's $32.24 price is over 2 times less than the dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this is a positive time to acquire CWH shares based on their forward looking dividends for the year 2022. The forecast annual dividend from $1K invested is 2.4 times greater than yesterday’s single share price. Consider yourself alerted. Now is the time.

All of the estimates above are speculation based on the past history of Camping World Holdings Inc. Only time and money invested in this stock will determine its market value.


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Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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