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Monday, May 27, 2024

Here’s Why Camping World Holdings Surged 84.1%

CWH ChartCamping World, the nation’s largest RV retailer, served as a gateway to the great outdoors for many during the pandemic, according to an analysis by Rich Duprey at the Motley Fool.
What happenedShares of Camping World Holdings (NYSE:CWH) soared 84.1% in 2020 as the coronavirus pandemic caused people to get back to nature and away from the crowds.

So what

The “escape to the wilderness” mindset pushed new and used RV sales 16% higher through the first nine months of the year, leading Camping World to post a $304 million profit for the year, a turnaround from a net loss of $39 million in 2019.

The success Camping World enjoyed also allowed investors to share in the growth as the RV retailer and lifestyle advocate showered its shareholders with a three-part dividend.

Camping World’s unique dividend structure has a regular portion of $0.09 per share and what it calls a recurring portion of $0.14 per share, to which it added a special one-time dividend of $0.77 per share for a total of $1 per share in 2020.

Now what

The RV retailer is using the gains it made this year from consumers’ changed perspective on the great outdoors to build additional opportunities for growth by expanding into new markets through a growth-by-acquisition strategy.

The RV Industry Association says industry sales grew in 2020 at a pace not seen in 40 years and it expects 2021 to see growth of 21%. But can that sort of pace be maintained once the economy normalizes and travel and tourism return? It could be that the vigor people adopted the RV lifestyle during the crisis will fade like the commitment of a New Year’s resolution to get in shape.

Should you invest $1,000 in Camping World Holdings, Inc. right now?

Before you consider Camping World Holdings, Inc., you’ll want to hear this. Investing legends and Motley Fool Co-founders David and Tom Gardner just revealed what they believe are the 10 best stocks for investors to buy right now… and Camping World Holdings, Inc. wasn’t one of them.

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