Addition to WinInStocks portfolio: CWH stock analysis, predictions, value

I was going through screeners this weekend, reading, researching trying to find the next stock for my portfolio. As always, under my strategy, I look for growth and unrealized value.

CWH (Camping World Holdings Inc) is one of the stocks I added to my portfolio.

Camping World Holdings, Inc., through its subsidiaries, operates as a recreational vehicle (RV) and outdoor retailer. It operates through two segments, Good Sam Services and Plans; and RV and Outdoor Retail. The company provides a portfolio of services, protection plans, products, and resources in the RV industry. It also offers extended vehicle service contracts; roadside assistance plans; property and casualty insurance programs; travel assist travel protection plans; and RV and outdoor related consumer shows, as well as produces various monthly and annual RV focused consumer magazines; travel and planning directories; and operates the Coast to Coast Club. In addition, the company provides new and used RVs; vehicle financing; RV repair and maintenance services; range of RV parts, equipment, supplies, and accessories, which include towing and hitching products, satellite and GPS systems, electrical and lighting products, appliances and furniture, and other products; and collision repair services comprising fiberglass front and rear cap replacement, windshield replacement, interior remodel solutions, and paint and body work. Further, it offers equipment, gears, and supplies for camping, hunting, fishing, skiing, snowboarding, bicycling, skateboarding, marine and watersports, and other outdoor activities, as well as operates Good Sam Club, a membership organization that offers savings on a range of products and services and provides co-branded credit cards. As of March 08, 2021, the company operated a network of approximately 170 retail locations in 38 states of the United States.

CWH Financial overview

As you can see below, the revenue for Camping World Holdings Inc. increased in 2020. The most positive point is that it managed to increase revenue on lower Cost of Goods Sold which impacted positively its Gross Income and Net Income.

These increased margins are expected to carry forward and are impacting the overall valuation for the company.

CWH Stock Forward Outlook and Predictions

Camping World Holdings Inc taps nicely into the new trend of isolation, escaping the city, and hence, analysts are expecting the revenues for Camping World Holdings will continue to grow in the next couple of years.

With increased revenues, EPS for CHW stock is expected to reach 4.41 at the end of 2021.

CWH stock Key financial ratings/Stock Value

CWH stock is currently trading at a PE of 13.5. Its forward PE for the next year (using EPS of $4.4) is 10. At the same time, the US Consumer Retailing PE industry average is 16.3x while the US Specialty Retail industry average is 20.3x.

It seems that stronger gross and net income margins are now making CWH stock more attractive and it is likely going to reach a PE of 15-16. The most recent price action after the release of Q4 results was quite bullish as there is an increased interest in the stock.

If we target a PE of 16 and an EPS of $4.4 we should see the price for the CWH to increase to around $70.

CWH Institutional Holdings

Institutions have been rather adding CWH to their portfolios. I would check into these changes in a while to see the impact of the most recent quarterly report.

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Disclaimer: As usual, trade at your own risk. I own CWHstock. I do not suggest you should buy any of the stocks I write about. As usual, please do your own due diligence before investing your own money in any of the stocks I write about. The above analysis is quite basic and just gives ideas for further research. A much deeper analysis is required for each stock, including the analysis of operations, debt, etc. I may sell any of the stocks I say I currently own at any moment before it reaches the targets that I set or keep them for even when they reach the target.