The great outdoors was a safe and popular outlet for people confined at home due to the Covid outbreak last year. That trend lifted sales and profits for companies like Camping World that cater to campers, hikers and the like. On Thursday, Camping World (CWH) got a positive adjustment to its Relative Strength (RS) Rating, from 77 to 82. The question now is: Can the camping products retailer sustain momentum as stay-at-home guidelines ease?
The 82 RS Rating lifts Camping World into a rarefied category. Decades of market research reveals that stocks that go on to make the biggest gains typically have an RS Rating north of 80 in the early stages of their moves. The company sells outdoors products such as sleeping bags, tents and other gear. It also rents RVs and offers protection plans via more than 171 Camping World RV and Outdoors retail outlets and online.
Among other key ratings, Camping World has an 80 Composite Rating, out of a best-possible 99. That’s a good but not great rating for that metric.
IBD’s Composite Rating combines five separate proprietary ratings of fundamental and technical performance into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better. Lincolnshire, Il.-based Camping World also has a B- Accumulation/Distribution Rating on an A+ to E scale, with A+ tops. The B- A/D Rating indicates that institutions are moderately accumulating shares.
Where it excels is in fundamentals and stock price growth. The company earned $1.40 per share in its most recent quarter, on a 52% surge in revenue to $1.56 billion. Earnings grew 4,766% last quarter, following gains of 200%, 1,000%-plus and 237% the prior three stanzas.
Camping World stock hit a Covid market crash low of 3.40 on March 18, 2020. It was above 44 Thursday afternoon, a 1,200% gain.
Camping World broke out earlier, but has fallen back below the prior 44.20 entry from a cup without handle. Thursday afternoon, its stock surged nearly 5% to 44.16. However, it should be noted that the most recent pattern is a later-stage base, which makes it riskier to establish a new position or add shares to an existing one.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
This proprietary rating tracks market leadership by using a 1 (worst) to 99 (best) score that shows how a stock’s price action over the trailing 52 weeks matches up against other publicly traded companies.
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